My involvement this week with the realtors was an eye opening and awesome experience! The realtors are out there making a difference in fighting for the property owner’s rights, as well as working on encouraging Legislation like HB 563 – The First-Time Homebuyer’s Savings Account.
HB 563 The First-Time Homebuyers Savings Account has striking similarities to the 529 Savings Account for higher education. This new first-time home buying legislation is designed to allow the creation of a special savings account for the down payment and other expenses associated with the purchase of a home. The brief overview of the Bill is as follows:
- It allows a state tax deduction equal to 50% of the taxpayer’s contribution for a first-time home buyer savings account in the year of the contribution.
- Earnings on the account are not subject to Missouri tax.
- The maximum contribution to an account is $16,000 per year, or $32,000 per year if filing a joint tax return.
- The maximum amount of all contributions for all tax years is $50,000, and the maximum total amount in an account is $150,000 inclusive of earnings.
- Funds may only be used to purchase a home by a first-time homebuyer.
- A first-time homebuyer is defined as a person who has never owned a single family home, owner-occupied primary residence or a person who, because of the individual’s dissolution of marriage, has not been listed on a property title for at least three consecutive years.
The Missouri Realtors are collectively encouraging their State Representatives and Senators to consider this HB 563 Legislation. If you know of a first-time home buyer and you see the merit in this legislation, I would certainly encourage you to contact your State Representative or Senator and make your voice heard. HB 563 provides a savings vehicle, a tax deduction, and a tax-free way for those first-time home-buyers to get out there and claim the American dream of owning their own home.