DC First-Time Homebuyer Reduction Applies to Revocable Trusts
As of October 1, 2017, the District of Columbia passed a reduced recordation tax benefit to first-time homebuyers that reduces the Recordation Tax for eligible DC First Time Homebuyers.
In general, the recordation tax will be reduced to 0.725% if the homebuyer taking title has never owned a principal residence in the District and the purchase price does not exceed $625,000. For more details on the general eligibility requirements, click here.
What was unclear from the passage of the initial legislation was whether a purchaser taking title in the name of a trust was eligible for the discount.
Since then, the District issued a Notice of Final Rulemaking clarifying that a revocable trust is eligible for the discount.
This allows for consistency with the Homestead Deduction, since it is a condition of the Reduced Recordation Tax that the property must qualify for the homestead deduction, and the homestead deduction does allow for revocable trusts to apply.
- Tags: First-time Homebuyers | Homebuying | Real Estate | Taxes | Transfer or Recordation | Washington DC
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