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Wednesday, January 18, 2017

Colorado Enacts the First-Time Homebuyers Savings Account Act

Last year’s General Assembly passed a law which allows Coloradans to deposit up to $50,000 of after-tax dollars into a First-Time Homebuyers Savings Account where it can grow tax-free up to $150,000 for use by the depositor or other family member/friend as a down payment on a home purchase.

Several other states have passed similar legislation, and in June, 2016, Rep. Mike Coffman introduced legislation to create the same law at a federal level. The state law only exempts deposits from paying state tax on interest and capital gains, but those gains are still taxable at the federal level.

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