Montana Form Ftb Draft - Montana First-Time Home Buyer Savings Account - 2011 Page 2
Download a blank fillable Montana Form Ftb Draft - Montana First-Time Home Buyer Savings Account - 2011 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Montana Form Ftb Draft - Montana First-Time Home Buyer Savings Account - 2011 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3Form FTB General Instructions
Purpose of this form. A resident who establishes a fi rst-
How long can I invest in and maintain my Montana fi rst-time
time home buyer savings account to pay eligible costs for the
home buyer account?
purchase of their fi rst single-family residence is allowed to exclude
You can contribute to your Montana fi rst-time home buyer savings
contributions of up to $3,000 annually in determining Montana
account for a period of 10 years. The funds you have in your
adjusted gross income, as well as interest and other income
Montana fi rst-time home buyer account will have to be used to
earned in the account. This form needs to be included each year
pay for eligible costs for purchasing your fi rst-time home within
with the account holder’s individual income tax return.
10 years after the year you establish your account. Any principal
Defi nitions
and income in your fi rst-time home buyer account not used to
purchase your home within this 10 year period, or after you have
“First-time home buyer” is a Montana resident individual who
purchased your home, is taxed as ordinary income.
has never individually or jointly owned or purchased under a
contract for deed a single-family residence in Montana or out-of-
I opened my Montana fi rst-time home buyer account by
state.
transferring more than $3,000 from my regular savings
account to my fi rst-time home buyers account. Can I exclude
“Single-family residence” is an owner-occupied residence in
my excess deposits into my fi rst-time home buyer savings
Montana. The term includes a manufactured home, trailer or
account in subsequent years?
mobile home if the running gear is removed, if it is attached to a
permanent foundation, and if your statement of intent declaring it
Yes. As long as you remain a fi rst-time home buyer and have not
as an improvement to real property has been recorded with the
purchased your fi rst-time home, you can deposit into an account
county clerk and recorder on a form furnished by the Department
more than the maximum exclusion in any given tax year and may
of Justice. The term also includes a condominium unit.
exclude in subsequent years any amounts previously deposited
and not excluded as principal in a prior year.
“Eligible costs” are the amounts that you pay for the down
payment and allowable closing costs for the purchase of your
Once you purchase your single-family residence, you are no
single-family home in Montana.
longer a fi rst-time home buyer. You cannot exclude from federal
adjusted gross income any amount deposited into your fi rst-time
“Nonqualifi ed withdrawals” are any withdrawals from your
home buyer account or any excess deposits that were previously
account that are not used for the down payment and allowable
made to your fi rst-time home buyer account after purchasing your
closing costs.
home.
Frequently Asked Questions
I have a Montana fi rst-time home buyer savings account. I
withdrew funds during 2011 that were not used to purchase
What is required to establish a Montana fi rst-time home
a home. Are these withdrawals considered nonqualifi ed
buyer savings account?
withdrawals and are there any penalties for this withdrawal?
This account is available to you if you are a resident of Montana
When you withdraw funds from your fi rst-time home buyer
who has never owned a single-family residence either jointly
account that are considered nonqualifi ed withdrawals, there
or alone and you established a fi rst-time home buyer savings
are two tax consequences. First, the withdrawal is taxable as
account either alone or jointly with another person, who also
ordinary income. Second, you are also subject to a 10% penalty
qualifi es as a fi rst-time home buyer. You can deduct annual
on this withdrawal. You will need to complete Part II of this
contributions to the account of up to $3,000 or, if you are married
form to calculate your penalty. Nonqualifi ed withdrawals that
and you fi le a joint return with your spouse, of up to $6,000. Your
are withdrawn on the last business day of your tax year are not
account has to be a new account established in the fi rst year that
subject to this 10% penalty, but they are included as taxable
you claim the deduction. Existing accounts do not qualify.
income and are included as an addition to federal adjusted gross
How much can I contribute to my Montana fi rst-time home
income in arriving at Montana adjusted gross income.
buyer savings account this year, and how much of this
I have a Montana fi rst-time home buyer account that I
amount can I exclude from my federal adjusted gross income
established while I was a resident of Montana. I have now
for 2011?
moved to another state. Can I still maintain my Montana fi rst-
There is no limit in any one year on the amount that you may
time home buyer account?
deposit into your Montana fi rst-time home buyer savings account,
No. A nonresident who fi les a fi nal return in Montana must report,
but there is a limit on the amount that you can exclude from your
as income in the fi nal year of residency, the amount of principal
federal adjusted gross income to arrive at your Montana adjusted
and interest previously excluded from adjusted gross income.
gross income.
As a nonresident, your withdrawal from the account is considered
If your fi ling status is single, head of household or married fi ling
a nonqualifi ed withdrawal and the amount of principal and interest
separately, the maximum amount that you can exclude from your
or other earnings previously excluded from Montana adjusted
federal adjusted gross income in any one year is $3,000 plus
gross income is considered ordinary income to Montana and
the interest or other income earned on this amount. If you are
subject to tax and the 10% nonqualifi ed withdrawal penalty unless
fi ling your return jointly with your spouse, the maximum amount
it is withdrawn at the end of the tax year.
that you can exclude from your federal adjusted gross income is
$6,000 plus the interest or other income earned on this amount.
Amounts deposited over the limitations listed above cannot be
excluded on your 2011 income tax return, but may be excluded in
future years.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial