Homebuyers may apply for DC Tax Abatement up to 3 years after closing

“Help! I didn’t know about DC Tax Abatement, and I have already settled. Is there anything I can do?”

We get emails and phone calls like this all the time. If it’s been less than three years since your closing, you can relax a little. You can apply for tax abatement after the fact, according to the Recorder of Deeds office. It must be within three years of your original purchase date.

You will still need to meet the guidelines and supply proper documentation. You must have met the property purchase price threshold, used the property as your principal residence and be domiciled in the District of Columbia.  

In addition, you will need to include with the tax abatement application:

• A copy of your purchase contract
• Your settlement statement
• Your last two income tax returns
• Two most recent paystubs and W-2’s for the tax years provided

The Recorder of Deeds office will review the information provided and let you know if there is any additional information they will need from you. Be prepared to provide the tax returns, notarized statements, etc. for the period in which you purchased the property, as well as, the W-2 for the same period.  

If you qualify, you may be entitled to part of the transfer/recordation tax paid at settlement and the five-year exemption for real estate taxes, so make sure you request a refund!

For further information, feel free to contact Catherine Schmitt.