us-co/statute/39/39-22-4705 — Eligible expenses - penalties for other uses

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us-co/statute/39/39-22-4705 — Eligible expenses - penalties for other uses · Axiom

(1) (a) For purposes of the income tax benefit conferred under this part 47, the money in a first-time home buyer savings account may be:

(I) Used for eligible expenses related to a qualified beneficiary's purchase of his or her primary residence in the state;

(II) Used for eligible expenses related to a qualified beneficiary's purchase of his or her primary residence in or outside the state, if the qualified beneficiary is active-duty military and was stationed in Colorado for any time after the creation of the account;

(III) Used for expenses that would have qualified under subparagraph (I) or

(II) of this paragraph (a), but the contract for purchase did not close;

(IV) Transferred to another newly created first-time home buyer savings account; or

(V) Used to pay a service fee that is deducted by the financial institution.

(b) Paragraph (a) of this subsection (1) applies regardless of whether the qualified beneficiary is the sole owner of the primary residence or joint owner with another person who does not qualify as qualified beneficiary. The money in a first-time home buyer account may not be used for the purposes in subparagraphs (I), (II), and (III) of paragraph (a) of this subsection (1) related to the purchase of a manufactured or mobile home that is not taxed as real property.

(2) Money withdrawn from a first-time home buyer savings account is subject to recapture in the taxable year in which it is withdrawn based on a proportion from the account subtracted under section 39-22-104 (4)(w)(I) to the total amount in the account, if:

(a) At the time of the withdrawal, it has been less than a year since the first deposit in the first-time home buyer savings account; or

(b) The money is used for any purpose other than those specified in subsection (1) of this section.

(3) If any money is subject to recapture under paragraph (b) of subsection (2) of this section, the account holder shall pay to the department a penalty in the same taxable year as the recapture. If the withdrawal was made ten or fewer years after the first deposit in the first-time home buyer savings account, then the penalty is equal to five percent of the amount subject to recapture, and if the withdrawal was made more than ten years after the first deposit in the account, then the penalty is equal to ten percent of the amount subject to recapture. But these penalties do not apply if:

(a) The money is used for eligible expenses related to a qualified beneficiary's purchase of his or her primary residence outside of the state; or

(b) The money is from a first-time home buyer savings account for which the qualified beneficiary dies and the account holder does not designate a new qualified beneficiary during the same taxable year.

(4) If the account holder or, if the first-time home buyer savings account is jointly owned, account holders die, then all of the money in the account that was subtracted from taxable income is subject to recapture in the taxable year of the death or deaths, but no penalty is due to the department.

in view

Whole section

Encodings · 8

minimum_account_holding_periodCO 39 § 39-22-4705 · parameter

39-22-4705(2)(a)

name: minimum_account_holding_period
kind: parameter
dtype: Count
unit: year
source: 39-22-4705(2)(a)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
          excerpt: less than a year since the first deposit
versions:
  - effective_from: '0001-01-01'
    formula: '1'

lower_penalty_rateCO 39 § 39-22-4705 · parameter

39-22-4705(3)

name: lower_penalty_rate
kind: parameter
dtype: Rate
source: 39-22-4705(3)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
          excerpt: penalty is equal to five percent
versions:
  - effective_from: '0001-01-01'
    formula: '0.05'

higher_penalty_rateCO 39 § 39-22-4705 · parameter

39-22-4705(3)

name: higher_penalty_rate
kind: parameter
dtype: Rate
source: 39-22-4705(3)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
          excerpt: penalty is equal to ten percent
versions:
  - effective_from: '0001-01-01'
    formula: '0.10'

lower_penalty_period_limitCO 39 § 39-22-4705 · parameter

39-22-4705(3)

name: lower_penalty_period_limit
kind: parameter
dtype: Count
unit: year
source: 39-22-4705(3)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: parameter
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
          excerpt: ten or fewer years after the first deposit
versions:
  - effective_from: '0001-01-01'
    formula: '10'

withdrawal_subject_to_recaptureCO 39 § 39-22-4705 · derived

39-22-4705(2)

name: withdrawal_subject_to_recapture
kind: derived
entity: FirstTimeHomeBuyerSavingsAccount
dtype: Judgment
period: Year
source: 39-22-4705(2)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: condition
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
versions:
  - effective_from: '0001-01-01'
    formula: |-
      account_age_at_withdrawal_in_years < minimum_account_holding_period
      or withdrawal_used_for_unpermitted_purpose

out_of_state_purchase_penalty_exception_appliesCO 39 § 39-22-4705 (a) · derived

39-22-4705(a)

name: out_of_state_purchase_penalty_exception_applies
kind: derived
entity: FirstTimeHomeBuyerSavingsAccount
dtype: Judgment
period: Year
source: 39-22-4705(a)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: exception
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
          excerpt: >-
            money is used for eligible expenses related to a qualified
            beneficiary's purchase of his or her primary residence outside of
            the state
versions:
  - effective_from: '0001-01-01'
    formula: >-
      withdrawal_used_for_unpermitted_purpose

      and
      money_used_for_eligible_expenses_for_qualified_beneficiary_primary_residence_outside_state

beneficiary_death_penalty_exception_appliesCO 39 § 39-22-4705 · derived

39-22-4705(3)(b)

name: beneficiary_death_penalty_exception_applies
kind: derived
entity: FirstTimeHomeBuyerSavingsAccount
dtype: Judgment
period: Year
source: 39-22-4705(3)(b)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: exception
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
versions:
  - effective_from: '0001-01-01'
    formula: |-
      qualified_beneficiary_died
      and not new_qualified_beneficiary_designated_during_same_taxable_year

penalty_dueCO 39 § 39-22-4705 · derived

39-22-4705(3)

name: penalty_due
kind: derived
entity: FirstTimeHomeBuyerSavingsAccount
dtype: Money
unit: USD
period: Year
source: 39-22-4705(3)
metadata:
  proof:
    atoms:
      - path: versions[0].formula
        kind: formula
        source:
          corpus_citation_path: us-co/statute/39/39-22-4705
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us-co:statutes/39/39-22-4705#out_of_state_purchase_penalty_exception_applies
          output: out_of_state_purchase_penalty_exception_applies
          hash: sha256:local
      - path: versions[0].formula
        kind: import
        import:
          target: >-
            us-co:statutes/39/39-22-4705#beneficiary_death_penalty_exception_applies
          output: beneficiary_death_penalty_exception_applies
          hash: sha256:local
versions:
  - effective_from: '0001-01-01'
    formula: >-
      if withdrawal_used_for_unpermitted_purpose and not
      out_of_state_purchase_penalty_exception_applies and not
      beneficiary_death_penalty_exception_applies: amount_subject_to_recapture *
      (if account_age_at_withdrawal_in_years <= lower_penalty_period_limit:
      lower_penalty_rate else: higher_penalty_rate) else: 0

▸rulespec code

Shown source

statutes/39/39-22-4705.yaml

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View on GitHub

Rules

minimum_account_holding_period

Parameter

source: 39-22-4705(2)(a)

- name: minimum_account_holding_period
  kind: parameter
  dtype: Count
  unit: year
  source: 39-22-4705(2)(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
            excerpt: less than a year since the first deposit
  versions:
    - effective_from: '0001-01-01'
      formula: '1'

lower_penalty_rate

Parameter

source: 39-22-4705(3)

- name: lower_penalty_rate
  kind: parameter
  dtype: Rate
  source: 39-22-4705(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
            excerpt: penalty is equal to five percent
  versions:
    - effective_from: '0001-01-01'
      formula: '0.05'

higher_penalty_rate

Parameter

source: 39-22-4705(3)

- name: higher_penalty_rate
  kind: parameter
  dtype: Rate
  source: 39-22-4705(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
            excerpt: penalty is equal to ten percent
  versions:
    - effective_from: '0001-01-01'
      formula: '0.10'

lower_penalty_period_limit

Parameter

source: 39-22-4705(3)

- name: lower_penalty_period_limit
  kind: parameter
  dtype: Count
  unit: year
  source: 39-22-4705(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: parameter
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
            excerpt: ten or fewer years after the first deposit
  versions:
    - effective_from: '0001-01-01'
      formula: '10'

withdrawal_subject_to_recapture

Derived

source: 39-22-4705(2)

- name: withdrawal_subject_to_recapture
  kind: derived
  entity: FirstTimeHomeBuyerSavingsAccount
  dtype: Judgment
  period: Year
  source: 39-22-4705(2)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: condition
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
  versions:
    - effective_from: '0001-01-01'
      formula: |-
        account_age_at_withdrawal_in_years < minimum_account_holding_period
        or withdrawal_used_for_unpermitted_purpose

out_of_state_purchase_penalty_exception_applies

Derived(a) in text ↖

source: 39-22-4705(a)

- name: out_of_state_purchase_penalty_exception_applies
  kind: derived
  entity: FirstTimeHomeBuyerSavingsAccount
  dtype: Judgment
  period: Year
  source: 39-22-4705(a)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
            excerpt: >-
              money is used for eligible expenses related to a qualified beneficiary's purchase of
              his or her primary residence outside of the state
  versions:
    - effective_from: '0001-01-01'
      formula: >-
        withdrawal_used_for_unpermitted_purpose

        and
        money_used_for_eligible_expenses_for_qualified_beneficiary_primary_residence_outside_state

beneficiary_death_penalty_exception_applies

Derived

source: 39-22-4705(3)(b)

- name: beneficiary_death_penalty_exception_applies
  kind: derived
  entity: FirstTimeHomeBuyerSavingsAccount
  dtype: Judgment
  period: Year
  source: 39-22-4705(3)(b)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: exception
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
  versions:
    - effective_from: '0001-01-01'
      formula: |-
        qualified_beneficiary_died
        and not new_qualified_beneficiary_designated_during_same_taxable_year

penalty_due

Derived

source: 39-22-4705(3)

- name: penalty_due
  kind: derived
  entity: FirstTimeHomeBuyerSavingsAccount
  dtype: Money
  unit: USD
  period: Year
  source: 39-22-4705(3)
  metadata:
    proof:
      atoms:
        - path: versions[0].formula
          kind: formula
          source:
            corpus_citation_path: us-co/statute/39/39-22-4705
        - path: versions[0].formula
          kind: import
          import:
            target: us-co:statutes/39/39-22-4705#out_of_state_purchase_penalty_exception_applies
            output: out_of_state_purchase_penalty_exception_applies
            hash: sha256:local
        - path: versions[0].formula
          kind: import
          import:
            target: us-co:statutes/39/39-22-4705#beneficiary_death_penalty_exception_applies
            output: beneficiary_death_penalty_exception_applies
            hash: sha256:local
  versions:
    - effective_from: '0001-01-01'
      formula: >-
        if withdrawal_used_for_unpermitted_purpose and not
        out_of_state_purchase_penalty_exception_applies and not
        beneficiary_death_penalty_exception_applies: amount_subject_to_recapture * (if
        account_age_at_withdrawal_in_years <= lower_penalty_period_limit: lower_penalty_rate else:
        higher_penalty_rate) else: 0

▸citations (1)

References

This rule cites 1 other rule.

CO 39 § 39-22-104 (4)(w)(I)inferredCO › Statutes › Title 39 › § 39-22-104 › (4)(w)(I)