Publication 530 |
2001 Tax Year |
Introduction
This publication provides tax information for first-time
homeowners. Your first home may be a mobile home, a single-family
house, a townhouse, a condominium, or a cooperative apartment.
The following topics are explained.
- How you treat items such as settlement and closing costs,
real estate taxes, home mortgage interest, and repairs.
- What you can and cannot deduct on your tax return.
- The tax credit you can claim if you received a mortgage
credit certificate when you bought your home.
- Why you should keep track of adjustments to the basis of
your home. (Your home's basis generally is what it costs; adjustments
include the cost of any improvements you might make.)
- What records you should keep as proof of the basis and
adjusted basis.
District of Columbia first-time homebuyer credit.
You may be able to claim a one-time tax credit of up to $5,000 if
you buy a main home in the District of Columbia. You must reduce the
basis of your home by the amount of the credit you claimed. Only
purchases after August 4, 1997, and before January 1, 2004, qualify
for this credit.
You qualify for the credit if you (and your spouse if you are
married) did not have an ownership interest in a main home in the
District of Columbia for at least 1 year before buying the new home.
Individuals with modified adjusted gross income of $90,000 or more
($130,000 or more in the case of a joint return) cannot claim the
credit. Individuals with modified adjusted gross income between
$70,000 and $90,000 (between $110,000 and $130,000 in the case of a
joint return) can claim only a reduced credit.
Use Form 8859, District of Columbia First-Time Homebuyer
Credit, to figure your credit. See the form and its instructions
for more information.
Comments and suggestions.
We welcome your comments about this publication and your
suggestions for future editions.
You can e-mail us while visiting our web site at
www.irs.gov.
You can write to us at the following address:
Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be
helpful if you would include your daytime phone number, including the
area code, in your correspondence.
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