Beginning with taxable year 2014, Virginia allows a subtraction for gains from home buyer savings accounts that were taxed for federal purposes. An individual may designate one or more accounts at a financial institution as a first-time home buyer savings account. Distributions from an account must be used for the sole purpose of paying or reimbursing the down payment and allowable closing costs for the purchase of a single-family residence in Virginia by a qualified beneficiary.
More information on subtraction and addition requirements related to home buyer savings accounts is available in your form instructions.