A law was recently passed that allows Oregonians to put money in a savings account toward the downpayment on their first home and not get taxed on the money! Below are the details.
Any Oregon resident who hasn’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 new home in Oregon.
What’s the benefit?
As an individual, you may deduct up to $5,000 from your Oregon taxable income for deposits and earnings in a First-Time Home Buyer Savings Account each year, for a maximum of 10 years. For those filing jointly, the deduc- tion can be up to $10,000 per year.
What can you spend your First-time Home Buyer Savings Account on?
- Down payment
- Closing costs
- Realtor fees
- Appraisal costs
- Loan Origination fees
What are the requirements?
A First Time Home Buyer Savings Account can be opened anytime between January 1, 2019 through December 31, 2026. Money deposited in the First-time Home Buyer Sav- ings Account 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 you will be required to add back to your income any amounts previously deducted.
Where can you set up an account?
Any financial institution that offers First-time Home Buyers Savings Accounts in Oregon. Ask your financial institution if they participate.
For more information and detailed requirements: