HOME Act

Summary: Helping Our Middle-Income Earners Act or the HOME Act  This bill amends the Internal Revenue Code to allow individual taxpayers an income-based&nbsp;tax deduction, up to $5,000,&nbsp;for qualified homeowners association assessments paid during the taxable year. The bill defines "qualified homeowners association assessments" as regularly occurring, mandatory financial assessments: (1) that are paid by a taxpayer to a homeowners association for the taxpayer's principal residence, (2) that directly benefit such residence, and (3) that arise&nbsp;from the taxpayer's mandatory and automatic membership in such association. The bill requires homeowners associations to file an informational return that sets forth the name, address, and taxpayer identification number of a taxpayer from whom the association receives assessments and the amount of such assessments. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the `` Helping Our Middle-Income Earners 
Act'' or the ``HOME Act''.

SEC. 2. DEDUCTION OF HOMEOWNERS ASSOCIATION ASSESSMENTS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. HOMEOWNERS ASSOCIATION ASSESSMENTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the qualified homeowners 
association assessments paid by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--Except as provided in paragraph 
        (2), the deduction allowed by subsection (a) for the taxable 
        year shall not exceed $5,000.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be allowable as a deduction under this 
                section shall be reduced (but not below zero) by the 
                amount determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $100,000 ($150,000 in the 
                                case of a joint return), bears to
                            ``(ii) $15,000.
                    ``(C) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means the adjusted 
                gross income of the taxpayer for the taxable year 
                increased by any amount excluded from gross income 
                under section 911, 931, or 933.
                    ``(D) Cost-of-living adjustment.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning in a calendar year after 
                        2016, the dollar amounts under subparagraph 
                        (B)(i)(II) shall be increased by an amount 
                        equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2015' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If any amount after 
                        adjustment under clause (i) is not a multiple 
                        of $500, such amount shall be rounded to the 
                        next lower multiple of $500.
    ``(c) Qualified Homeowners Association Assessments.--For purposes 
of this section--
            ``(1) In general.--The term `qualified homeowners 
        association assessments' means regularly occurring, mandatory 
        financial assessments (other than a special assessment)--
                    ``(A) paid by a taxpayer to a homeowners 
                association with respect to the taxpayer's principal 
                residence (within the meaning of section 121),
                    ``(B) that directly benefit the taxpayer's 
                principal residence, and
                    ``(C) the obligation of which to pay arises from 
                the taxpayer's mandatory and automatic membership in 
                such homeowners association.
            ``(2) Homeowners association.--The term `homeowners 
        association' has the meaning given such term in section 
        528(c)(1) (determined without regard to timeshare 
        associations).''.
    (b) Information Reporting.--Subpart B of part III of subchapter A 
of chapter 61 of such Code is amended by adding at the end the 
following new section:

``SEC. 6050X. RETURNS RELATED TO HOMEOWNERS ASSOCIATION ASSESSMENTS.

    ``(a) In General.--Any homeowners association which receives 
qualified homeowners association assessments from any individual during 
any calendar year shall make a return (at such time and in such form 
and manner) setting forth--
            ``(1) the name, address, and TIN of each such individual, 
        and
            ``(2) the amount of qualified homeowners association 
        assessments received from each such individual during the 
        calendar year.
    ``(b) Statements To Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return under such subsection a written 
statement showing--
            ``(1) the name, address, and phone number of the 
        information contact of the person required to make such return, 
        and
            ``(2) the information required by subsection (a) with 
        respect to the individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) was required to be made.
    ``(c) Definitions.--For purposes of this section, the terms 
`homeowners association' and `qualified homeowners association 
assessments' shall have the respective meanings given such terms by 
section 224.''.
    (c) Deduction Not Treated as Miscellaneous Itemized Deduction.--
Section 67(b) of such Code is amended by striking ``and'' at the end of 
paragraph (11), by striking the period at the end of paragraph (12) and 
inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(13) the deduction under section 224 (relating to 
        homeowners association assessments).''.
    (d) Clerical Amendment.--The table of sections for Part VII of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 224 and inserting the following:

``Sec. 224. Homeowners association assessments.
``Sec. 225. Cross reference.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.