Savings for Down Payment May Soon Be Tax-Free

Legislation, with bipartisan support, is currently in the works to allow first time home buyers to save for their down payment tax free.  U.S. Representatives Daniel Webster (R-Fla.), John Carney (D-Del.), Rep. Peter Welch (D-Vt.), and Rep. Joe Heck (R-N.V.) announced the introduction of H.R. 2929, the “Creating Homeownership Opportunities Act,” which would act like a health saving account but for home ownership according to FloridaRealtors.org.

First time home buyers can contribute up to $10,000 per year into a pre-tax savings account.  The money can be used later to purchase a home or rolled over into a retirement account if a balance remains.  Even though www.govtrac.us does not give this bill a good prognosis, I think it is worth following.  The bill was introduced on August 1, 2013, so it is in the beginning stages at the committee level.  To track the bill, click here.  For more information from Florida Realtors, click here.

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