We are living in very difficult and what can seem like dark times. Our lives have forever been changed by current events. As many look for the positive, it is important that Idahoans become familiar with some significant and timely legislation that passed this session, House Bill 589.
It can take years to save for a down payment to purchase a home, to finally be able to write what is undoubtedly the largest check some have ever written. With increasing financial stresses, Idaho families are left wondering if they will ever be able to purchase their first home. The Idaho Realtors Association and the State of Idaho have put a plan in place to make the dream of homeownership possible!
Our research has found that in Idaho more than one-third of residents rent their home and 70-percent of those renters say they would rather own a home. 94-percent of those people say that the down payment is their major hurdle.
Idaho Realtors have worked to break down that barrier with the passage of HB 589. This new law will go into place on July 1, giving first-time homebuyers a tax break so they can save more money easily and achieve the dream of homeownership. Idaho Realtors believe in the strength of home ownership. The American Dream creates a sense of pride and commitment to a community, to the schools and to local businesses. Owning a home changes lives!
First-time homebuyers will be able to create a savings account similar to other critical tax-advantage savings accounts that Idahoans can currently use for healthcare and educational purposes. Beginning this tax year, the annual contribution and any interest earned on a first-time homebuyer savings account will be tax deductible.
The maximum deduction will be $15,000 for a single filer and $30,000 for a married couple filing jointly. This allows Idahoans to keep more of their own hard-earned money as they save for a home.
We are unsure what we can expect when life gets back to some sense of normalcy when this pandemic is over.
But one thing we do know is the value of owning a home and the peace of mind it can bring. Coming home has never been more important! It is our hope as Idaho Realtors, that through this exciting new law, we can help more Idahoans become homeowners thus strengthening our great state.
We as Idahoans are in this together and that is good news indeed!
Marion Wadsworth is President of the Idaho Realtors Association
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