Washington DC Homestead Deduction
The Washington DC Homestead Deduction benefit reduces a homeowner's real property assessed value by $67,500 prior to computing the yearly tax liability and it is limited to residential property only.
To qualify, you must:
- Have an application on file with the DC OTR (Office of Tax and Revenue);
- The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and
- The property must be the principal residence (domicile) of the owner/applicant.
If a properly completed and approved application is filed from October 1 to March 31, the property will receive the DC Homestead Deduction benefit for the entire tax year (and for all tax years in the future). If a properly completed and approved application is filed from April 1 to September 30, the property will receive one-half of the benefit reflected on the second-half tax bill (and full deductions for all tax years in the future).
DC Co-Op Homestead Deduction
To qualify for the DC Homestead Deduction in the case of a cooperative housing association, the unit must be occupied by the shareholder (or member) as his/her principal residence (domicile), and the benefit is granted to the cooperative (which will supply and collect the applications).
DC Property Transferred to a Trust
In the case of property transferred to a trust, the property may qualify for the Homestead benefit if:
- The property was eligible for the Homestead benefit before the transfer;
- The property is transferred to a revocable trust;
- The transfer is not for money (or other consideration); and
- The property remains the principal place of residence of the applicant/transferor/trustor before and after the transfer.