                                 CODE OF VIRGINIA

TAX EXEMPTION; CONDITIONS (§ 36-173)

A. All interest or other income earned attributable to an account shall be
excluded from the Virginia taxable income of the account holder as provided
under subdivision 25 of &#xA7; 58.1-322.02.

B. There shall be an aggregate limit of $50,000 per account on the amount of
principal for which the account holder may claim first-time home buyer savings
account status. Only cash and marketable securities may be contributed to an
account.

C. Subject to the aggregate limit on the amount of principal that may be
contributed to an account pursuant to subsection B, there shall be a limitation
of $150,000 on the amount of principal and interest or other income on the
principal that may be retained within an account.

D. An account holder shall be subject to Virginia income tax pursuant to
subdivision 6 of &#xA7; 58.1-322.01 to the extent of any loss deducted as a
capital loss by the individual for federal income tax purposes attributable to
the person&#8217;s account.

E. Upon being furnished proof of the death of the account holder, a financial
institution shall distribute the principal and accumulated interest or other
income in the account in accordance with the terms of the contract governing the
account.

HISTORY: 2014, c. 729, § 55-557; 2017, c. 444; 2019, c. 712.