What is the Virginia First-Time Home Buyer Savings Accounts subtraction?
Code: 54
You may subtract any income from a first-time home buyer savings account that was included in your federal adjusted gross income as interest, capital gains, or other income.
Distributions from a first-time home buyer savings account may only be used for the purpose of paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia by a qualified beneficiary. If you use account funds for any other purpose, the subtractions you claimed in all prior taxable years must be recaptured in the year of the withdrawal, even if the withdrawal occurred after the expiration of Virginia's three-year statute of limitations.
To claim the subtraction, you must designate an account as a first-time home buyer savings account. You can designate an account by submitting documentation with your Virginia income tax return for the first taxable year in which you claim the subtraction. You must submit documentation for each account that you're designating.
After designating an account as a first-time home buyer savings account, you are required to include updated information for the account for all future taxable years in which you're required to file a Virginia income tax return. If you have designated more than one existing first-time home buyer savings account, you are required to submit updated information for each account. More information is available in the First-Time Home Buyer Savings Account Guidelines .
What documentation do I need to submit for this subtraction?
You may subtract any income from a first-time home buyer savings account that was included in your federal adjusted gross income as interest, capital gains, or other income.
Distributions from a first-time home buyer savings account may only be used for the purpose of paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia by a qualified beneficiary. If you use account funds for any other purpose, the subtractions you claimed in all prior taxable years must be recaptured in the year of the withdrawal, even if the withdrawal occurred after the expiration of Virginia's three-year statute of limitations.
To claim the subtraction, you must designate an account as a first-time home buyer savings account. You can designate an account by submitting documentation with your Virginia income tax return for the first taxable year in which you claim the subtraction. You must submit documentation for each account that you're designating.
After designating an account as a first-time home buyer savings account, you are required to include updated information for the account for all future taxable years in which you're required to file a Virginia income tax return. If you have designated more than one existing first-time home buyer savings account, you are required to submit updated information for each account. More information is available in the First-Time Home Buyer Savings Account Guidelines .
What documentation do I need to submit for this subtraction?
