DC Real Property Assessment Cap Credit

Understanding the property tax assessment process can be a bit tricky. Specifically, it can be difficult to understand the difference between an assessed value and a taxable assessed value. Part of the confusion has to do with the Assessment Cap Credit. Here is an example of a recent question on this topic: 

Question: On my DC Tax bill, the assessed value is listed as $388,500, but my taxable assessment was only $291,200, a difference of $97,300. What accounts for this difference?

Answer:  The bulk of the difference has to do with the Homestead Deduction, which reduces the real property taxable assessment by $72,450.  However, there is a second benefit to the Homestead Deduction that receives a lot less attention, the Assessment Cap Credit.  This credit provides that the taxable assessment cannot increase more than 10% per year.  The credit is not applied against the assessed value, but it is used to reduce the taxable assessed value.  In the above question, the additional credit that reduces the taxable assessment by a further $24,850 is the assessed cap credit.  Further, based on the above numbers, next year’s taxable assessment cannot exceed $320,320 ($291,200 plus 10%), regardless of the assessed value (assuming of course that the property is still registered as a homestead).

The District of Columbia Office of Tax and Revenue has great information on their website that explains in detail the real property process and the credits available.

Maximum VA Loan County Limits for 2018

The Department of Veterans Affairs Loan Guaranty Program recently published county “limits” to be used for VA Loans effective January 1, 2018.

Please note, these limits do not reflect a maximum amount that an eligible veteran is permitted to borrow, but rather, reflects the VA’s maximum guaranty amount for a particular county.  The maximum VA guaranty amount for loans over $144,000 is twenty-five (25%) percent of the 2018 VA limit. 

The limits listed below are for some counties in Maryland and Virginia, as well as for the District of Columbia.  To get a complete list of the county limits for 2018, please view here. [Please note, if your county is not listed on the county limits chart on the VA website, the 2018 limit is $453,100.]

STATE

COUNTY

2018 VA LIMIT

DC

District of Columbia

$679,650

MD

Anne Arundel

$517,500

MD

Frederick

$679,650

MD

Howard

$517,500

MD

Montgomery

$679,650

MD

Prince George’s

$679,650

VA

Alexandria

$679,650

VA

Arlington

$679,650

VA

Fairfax

$679,650

VA

Falls Church

$679,650

VA

Fauquier

$679,650

VA

Loudoun

$679,650

VA

Manassas

$679,650

VA

Prince William

$679,650

Condominium By-Laws: Why are they so important?

If you are considering purchasing a condo, it is important that you read through all the condominium documents that have been provided by the seller for your review. You will be provided with what appears to be an overwhelming amount of paperwork, but reading through the information will assist you in making an immediate decision as to whether this is the right condo for you and it may also assist you down the road should any issues arise that impact you as the owner. 

The condominium package that you receive, often called the “resale package”, will contain an entire set of condominium governing docs that include the Declaration, By-laws, copies of financial records of the condo, plat and plans, and rules and regulations. The By-laws are perhaps the most important part of any condominium association documents. The By-laws are a contract between the condo association and the owners. The condo unit must be used only in accordance with the Bylaws of the association. They contain certain information such as the duties and authority of the Board, what parts of the condo you own, whether leasing is permitted, what responsibilities unit owners have, what kinds and sizes of pets are permitted, age restrictions, procedures for any special assessment and whether or not a special assessment requires the vote of the members (owners), procedures for setting and raising assessment amounts and whether there is a limit on annual assessment increases, insurance requirements, and the list goes on and on.

Taking the time to read through and familiarizing yourself with the terms of condominium documents will put you in a much better position to determine if the condo is the right one for you. 

Food Drive to Help the Hungry

Food Drive to Help the Hungry

Federal Title has teamed up with the Capital Area Food Bank to help fight hunger in the DMV with food drives at both our office locations. Our goal is to contribute 50 pounds of their most wanted food with support from people like YOU. Please help support our mission by donating canned goods to either of our office locations mentioned below by Thursday, November 30, 2017.   

FRIENDSHIP HEIGHTS
5335 Wisconsin Ave., NW #700
Washington, D.C. 20015
 U STREET / LOGAN CIRCLE
1803 14th Street, NW, Third Floor
Washington, D.C. 20009

 

CLOSE IT! House of the Week: A Corner Condo in Georgetown

We made our way over to the other side of DC to view a Georgetown penthouse with major curb appeal. This corner condo can’t be missed because of its yellow exterior and castle-like structure. It has an opened floor plan with light hardwood floors, high ceilings, and plantation shutters that give the unit much charm. It also has two large bedrooms and one in a half baths with a soaking tub. The gourmet kitchen is roomy and includes stainless steel appliances, perfect for an aspiring chef. The unit is the largest in the building and has a private rooftop deck to enjoy those home cooked meals while overlooking the city. The property is listed for $775,000.

Assuming a homebuyer puts down 20 percent, their cash-to-close would be $175,494 and monthly mortgage payments would be approximately $2,241. However, for a complete picture of what your cash-to-close figures would be, including seller’s net proceeds from the sale and such, view the Close It! Web version or download the free Close It! iOS app

Feel free to tell your agent that you want to use Federal Title & Escrow Company for settlement and save up to $750 on closing costs by ordering services online. Always remember, it’s your choice in selecting a settlement company when it’s time to close. Learn more here.  

  • Ways to save at closing

    Title charges are the largest chunk of closing costs and can vary by hundreds of dollars.

    Learn more

  • What are closing costs?

    The real estate closing process involves loan steps, legal steps and title steps.

    Learn more

  • What's title insurance?

    Insure your legal ownership just like you'd insure the building, but for lots cheaper.

    Learn more

Connect with us


Our blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. Rate tables and figures that appear on our blog are deemed reliable but not guaranteed. For current rates & policies, refer to our Quick Quote and Consumer Guide. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on our blog.