WHAT IS A HOME BUYER SAVINGS ACCOUNT?
In the new year, many Oklahomans are focusing on making positive changes in their life and setting goals for the new year. For many, that goal is home ownership. There is a great new tool for Oklahomans looking to start saving or becoming a home owner: the Home Buyer Savings Account.
Home Buyer Savings Accounts allows potential home buyers to create monetary savings accounts for tax-deductible, home purchase related expenses. These expenses include down payments, escrow, inspection, lender fees and appraisal fees. The great thing about these Home Buyer Savings Accounts is that the interest and capital gain earnings are FREE from Oklahoma state taxes. The account enables Oklahomans to deduct up to $5,000 for an individual and up to $10,000 for a joint account from taxable income in a single year.
One of the best parts about these Home Buyer Savings Accounts is that parents and grandparents have the convenience to set up funds for their children and grandchildren, similar to a 529 College Savings Plan, but for homes. We all want financial security for our children, and now we can assist them with that. Contributing to a Home Buyer Savings Account makes a great graduation, birthday or Christmas gift for loved ones.
76% of those under the age of 44 said that monetary reasons are the biggest barrier to homeownership, and Home Buyer Savings Accounts help alleviate this problem.
Visit your local financial institution to get a Home Buyers Savings Account started today!
Are you a REALTOR® looking for more information about Home Buyer Savings Accounts and getting the information to your clients, colleagues and neighbors?Find more information below like:
- A REALTOR® Toolkit complete with infographics about HBSAs, template emails to send and best practices for discussing HBSAs on social media.
- A podcast from Talking Real, discussing the passage of SB961, the law which created HBSAs, as well as how they work.
HOW DOES AN HBSA WORK?
1. Visit your preferred local financial institution, and tell them you want to open a Home Buyer Savings Account that will be used solely for your home-buying funds.
2. Next, fill out, print, and sign Oklahoma Tax Form 588 to designate a beneficiary. Submit your completed form to the Oklahoma Tax Commission no later than April 15 to ensure the account qualifies for tax purposes.
3. Finally, start saving! Contributions up to $5,000 per year for individuals and $10,000 per year for joint filers will be state tax-deductible.
- Sample Social Media Posts: FB + Twitter (docx)
- Sample Email to Clients/Neighbors (docx)
- Customizable Postcard for REALTORS® (docx)
- Infographic: Open an HBSA (pdf)
- Infographic: How an HBSA Works (pdf)
- Infographic: HBSAs for Loved Ones (pdf)