*DO=NOT=SEND*
Instructions for First-time Home Buyer Savings Account
Interest Deduction
You must complete this form annually and le it with your
income tax return if you open and designate an account
as a rst-time home buyer account. Please carefully read
all of the instructions, fully ll out and sign the form, and
submit it with your income tax return with all of the requested
documentation for each rst-time home buyer account you
designate. Keep all of your account statements for the rst-
time home buyer account.
If you are claiming a rst-time home buyer savings account
interest deduction, check the applicable box at the top of
form DR 0350. You must submit account statements and/or
a 1099 showing the only taxable interest and/or earnings
on the account in the tax year claimed. Upon withdrawal,
you must also submit a real estate settlement statement that
shows that the withdrawal was used for an eligible expense.
Eligible expenses are down payments or closing costs that
are included on the settlement statement (including, but not
limited to, appraisal fees, mortgage origination fees, and
inspection fees.)
To support my claim for the rst-time home buyer savings
account interest deduction, I attest:
1. The money in my rst-time home buyer savings
account
1
will only be used for the following purposes,
as provided by section 39-22-4705, C.R.S.:
a. Eligible expenses
2
related to a qualified
beneciary’s
3
purchase of his or her primary
residence in Colorado
b. Eligible expenses related to a qualified
beneciary’s purchase of his or her primary
residence in or outside the state, if the qualied
beneficiary is active-duty military and was
stationed in Colorado for any time after the
creation of the account;
c. Expenses that would have qualified under
paragraphs 1 or 2 above, but the contract for
purchase did not close;
d. As a transfer to another newly created rst-time
home buyer savings account; or
e. To pay a service fee that is deducted by the
nancial institution.
2. I have not and will not claim any deduction for
interest or other income earned on contributions
to my first-time home buyer savings account
exceeding $14,000 ($28,000 for account holders
who le a joint return) for a taxable year or $50,000
for all taxable years.
3. The amount in my rst-time home buyer savings
account will not exceed $150,000.
4. Money withdrawn from a first-time home buyer
savings account is subject to recapture and/or
penalty in the taxable year in which it is withdrawn
as explained in section 39-22-4705(2), (3), and (4),
C.R.S., if
a. At the time of the withdrawal, it has been less
than a year since the rst deposit in the rst-
time home buyer savings account;
b. The money is used for any purpose other than
those listed above; or
c. The account holder(s) die.
1
A “rst-time home buyer savings account” is an account with a nancial
institution designated as such in accordance with section 39-22-4704(1) §
39-22-4703(6), C.R.S.
2
“Eligible expenses” are a down payment and any closing costs included
on a real estate settlement statement, including, but not limited to,
appraisal fees, mortgage origination fees, and inspection fees. § 39-22-
4703(3), C.R.S.
3
A “qualied beneciary” is a rst-time home buyer designated by an
account holder for whom the money in a rst-time home buyer savings
account is or will be used for eligible expenses for the purchase of his or
her primary residence in the state. § 39-22-4703(7), C.R.S.
DR 0350 (06/29/18)
COLORADO DEPARTMENT OF REVENUE
Colorado.gov/Tax
