Montana First-Time Home Buyer Savings Account (Form FTB)

December 27, 2023

Overview

Before January 1, 2024, a Montana resident could establish a first-time home buyer savings account to reduce the cost of purchasing their first single-family home in Montana.

Forms

Montana First-Time Home Buyer Savings Account (Form FTB) 2015 - 2023
Year Download
2023 Montana First-Time Home Buyer Savings Account (Form FTB)
2022 Montana First-Time Home Buyer Savings Account (Form FTB)
2021 Montana First-Time Home Buyer Savings Account (Form FTB)
2020 Montana First-Time Home Buyer Savings Account (Form FTB)
2019 Montana First-Time Home Buyer Savings Account (Form FTB)
2018 Montana First-Time Home Buyer Savings Account (Form FTB)
2017 Montana First-Time Home Buyer Savings Account (Form FTB)
2016 Montana First-Time Home Buyer Savings Account (Form FTB)
2015 Montana First-Time Home Buyer Savings Account (Form FTB)

Benefit

Deposits

  • Before January 1, 2024, a Montana resident could exclude up to $3,000 of a contribution each year ($6,000 for those married filing jointly) for up to 10 years.
  • Beginning with the 2024 tax year, taxpayers may only exclude contributions and earnings from the account from before January 1, 2024.
  • As of January 1, 2024, taxpayers may no longer open or contribute to a first-time home buyer’s account.

Withdrawals and Earnings

  • Interest and other income earned on the account are not taxable to you if you withdraw them to pay for eligible expenses.

Eligibility

Before January 1, 2024, any individual who was a resident of Montana and who never owned or purchased a single-family residence in Montana or out-of-state could open an account.

Qualified Expenses

  • Funds in the account may only be used for the purchase of the taxpayer's first single-family home in Montana.
  • You must use the funds in your account to pay for eligible expenses within 10 years following the year in which the account was established.
    • For example, if you opened a first-time homebuyer account in 2023, you must use the funds within the account by 2033.

Eligible expenses include:

  • Down payment
  • Closing costs
  • Realtor fees
  • Appraisal costs
  • Credit history report
  • Points
  • Pro-rated property taxes
  • Home inspections
  • Loan origination fees

Recapture Tax and Penalties

If you withdraw funds from the account for any purpose other than paying eligible expenses for the purchase of a single-family home in Montana, these funds are taxed as ordinary income. The recapturable amount must be reported on Form 2, Schedule I.

Any principal, interest, or other earnings accumulated on the account and not used within 10 years of opening the account, must be reported as ordinary income on Form 2, Schedule I of the tax year the 10 year period ends.

The same rule applies when you move out of state. The ordinary income must be reported on the last tax return you file as a Montana resident or part-year resident.

Any recapture is subject to a 10% penalty, unless you withdraw funds on the last business day of the year. You must report the penalty on Form 2, Schedule IV.

For further instructions on the Montana first-time home buyer savings account, see the Form 2 Instructions. 

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