|Saving for a downpayment just got easier|
First-Time Homebuyer Savings Account signed into law in MinnesotaPrompted by the Minnesota REALTORS and Housing First Minnesota, the Minnesota legislature this year adopted a new law authorizing the First-Time Homebuyer Savings Account. Start saving today and deduct 100% of your interest earned from your Minnesota taxes.
Details for the new law
- Parents or grandparents can set up an account and receive a deduction from their own state taxes.
- Individuals can deposit money annually into a FDIC-insured savings account.
- Contributions to the account receive a state tax deduction on interest earned. Individuals can deposit up to $14,000 annually; married joint filers can deposit up to $28,000 per year.
- The plan applies to first-time homebuyers and those re-entering the housing market if they have not owned a home within three years.
- Effective for taxable years beginning after December 31, 2016.