Oregon now offers a subtraction for amounts you deposited during the tax year into a designated FTHBSA, along with any earnings on your deposits.
Who may claim the subtraction?
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 may qualify for this subtraction.
What are the requirements?
A FTHBSA can be opened any time between January 1, 2019 and December 31, 2026. Money deposited in the account must be used to pay qualifying costs of buying a single-family home within 10 years of initially opening the account.
What costs will qualify?
You must use your FTHBSA funds to pay costs associated with buying a home, such as:
- Down payment.
- Title insurance and other closing costs.
- Realtor commissions.
- Appraisal and inspection fees.
- Loan origination fees.
What’s the tax benefit of my FTHBSA?
Up to $5,000 in deposits and earnings for the year may be subtracted by an individual filer each year—up to $10,000 each year if you’re filing a joint return—for up to ten years.
https://www.oregon.gov/DOR/programs/individuals/Pages/first-homebuyers.aspx
This material is compiled from sources SST believes to be reliable. The possibility of error does exist. The material is intended only as educational and may omit information on exceptions, qualifications, definitions, and effective dates. The reader should not rely solely on this material but should review original sources to determine the law and applicability for each situation. Neither the author nor Solid State Tax Service, LLC will be responsible for any error, omission, or inaccuracy under any circumstance.