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Savings option available to potential first-time homeowners

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Potential homeowners can consider using an Oregon First-time Homebuyers Savings Account (FTHSA) to help save for a new home and possibly reduce their taxes.

In 2018, the Oregon Legislature passed House Bill 4007, which allows Oregon taxpayers to deduct up to $5,000 ($10,000 if filing jointly) per year from their taxable income for deposits and earnings in a FTHSA.

Eligible Oregon residents are those who haven’t purchased or owned a single-family home, either individually or jointly, in the three years prior to the date of their planned purchase of a home in Oregon. Accounts can be set up through any financial institution that offers FTHSAs in Oregon through December 31, 2026.

Funds in a FTHSA can be used for:

  • Down payments.
  • Closing costs.
  • Realtor fees.
  • Appraisal costs.
  • Loan origination fees.

A FTHSA may be opened anytime through December 31, 2026. Money deposited in the FTHSA must be used to buy a single-family home within 10 years of initially opening the account. If funds are not used to purchase a home, a five percent penalty may be imposed, and taxpayers will be required to add back to their income any amounts previously deducted.

For more information visit, www.oregon.gov/dor and search for “First-time Homebuyers Savings Account.”

 

News Release
News Release
This information was provided for dissemination to our readers and was edited to comply with Associated Press style and professional journalism standards by Homepage staff.

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