From: davidm@meaddata.com (David Miller)
Subject: Current Tax Bill / First Time Homebuyers
Keywords: Tax Credit First Time Homebuyer
Followup-To: misc.taxes
Organization: Mead Data Central, Dayton OH
Date: Fri, 4 Sep 1992 13:21:47 GMT
Distribution: usa

I found two House Bills that discussed first time homebuyer credits.  One,
HR 5618 version 1, was last touched July 13 when it was sent to committee.
A second one HR 11 version 6, is more current, with the latest action in
August.

The following is some text from HR 11 - you figure it out....

                  *Subpart C- First -Time  Homebuyer  Credit                 *
*SEC. 2121. CREDIT FOR PURCHASE OF PRINCIPAL RESIDENCE BY  FIRST -TIME     *
* HOMEBUYER.                                                               *
*  (a) IN GENERAL.-Subpart A of part IV of subchapter A of chapter 1     *
*(relating to nonrefundable personal credits) is amended by inserting    *
*after section 22 the following new section:                             *
*"SEC. 23. PURCHASE OF PRINCIPAL RESIDENCE BY  FIRST -TIME  HOMEBUYER.       *
*  "(a) ALLOWANCE OF CREDIT.-IN THE CASE OF A  FIRST -TIME  HOMEBUYER,  THERE*
*SHALL BE ALLOWED AS A CREDIT AGAINST THE TAX IMPOSED BY THIS CHAPTER AN *
*AMOUNT EQUAL TO 10 PERCENT OF THE PURCHASE PRICE OF THE FIRST PRINCIPAL *
*RESIDENCE PURCHASED BY THE TAXPAYER DURING THE ELIGIBILITY PERIOD.      *
*EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, SUCH CREDIT SHALL BE      *
*ALLOWED FOR THE TAXABLE YEAR IN WHICH SUCH RESIDENCE IS PURCHASED.      *
*  "(B) LIMITATIONS.-                                                    *
*      "(1) MAXIMUM OVERALL CREDIT.-THE CREDIT ALLOWED BY SUBSECTION (A) *
*    TO THE TAXPAYER SHALL NOT EXCEED $2,500.                            *
*      "(2) MAXIMUM FIRST YEAR CREDIT.-OF THE AGGREGATE CREDIT ALLOWABLE *
*    UNDER SUBSECTION (A) AFTER THE APPLICATION OF PARAGRAPH (1)-        *
*          "(A) NOT MORE THAN 50 PERCENT SHALL BE ALLOWED FOR THE TAXABLE*
*        YEAR IN WHICH THE RESIDENCE IS PURCHASED, AND                   *
*          "(B) THE REMAINING CREDIT SHALL BE ALLOWABLE FOR THE          *
*        SUCCEEDING TAXABLE YEAR.                                        *
*  "(C)  FIRST -TIME  HOMEBUYER. -FOR PURPOSES OF THIS SECTION-              *
*      "(1) IN GENERAL.-THE TERM ' FIRST -TIME  HOMEBUYER'  MEANS ANY        *
*    INDIVIDUAL UNLESS SUCH INDIVIDUAL OR SUCH INDIVIDUAL'S SPOUSE HAD A *
*    PRESENT OWNERSHIP INTEREST IN ANY PRINCIPAL RESIDENCE AT ANY TIME   *
*    DURING THE 3-YEAR PERIOD ENDING ON THE DATE OF THE PURCHASE OF THE  *
*    RESIDENCE REFERRED TO IN SUBSECTION (A).                            *
*      "(2) UNMARRIED JOINT OWNERS.-AN INDIVIDUAL SHALL NOT BE TREATED AS*
*    A  FIRST -TIME  HOMEBUYER  WITH RESPECT TO ANY RESIDENCE UNLESS ALL THE *
*    INDIVIDUALS PURCHASING SUCH RESIDENCE WITH SUCH INDIVIDUAL ARE      *
*     FIRST -TIME  HOMEBUYERS.                                               *
*      "(3) ALLOCATION OF LIMITS.-ALL INDIVIDUALS PURCHASING A RESIDENCE *
*    SHALL BE TREATED AS 1 INDIVIDUAL FOR PURPOSES OF DETERMINING THE    *
*    MAXIMUM CREDIT UNDER SUBSECTION (A), AND SUCH MAXIMUM CREDIT SHALL  *
*    BE ALLOCATED AMONG SUCH INDIVIDUALS UNDER REGULATIONS PRESCRIBED BY *
*    THE SECRETARY.                                                      *
*      "(4) CERTAIN INDIVIDUALS INELIGIBLE.-THE TERM ' FIRST -TIME         **     HOMEBUYER'  SHALL NOT INCLUDE ANY INDIVIDUAL IF, ON THE DATE OF THE  *
*    PURCHASE OF THE RESIDENCE, THE PERIOD OF TIME SPECIFIED IN SECTION  *
*    1034(A) IS SUSPENDED UNDER SUBSECTION (A)(6), (H), OR (K) OF SECTION*
*    1034 WITH RESPECT TO SUCH INDIVIDUAL.                               *
*      "(5) SPECIAL RULE FOR CERTAIN CONTRACTS OF DEED.-IN THE CASE OF AN*
*    INDIVIDUAL DESCRIBED IN SECTION 143(I)(1)(C) FOR ANY YEAR, AN       *
*    OWNERSHIP INTEREST SHALL NOT INCLUDE A CONTRACT OF DEED DESCRIBED IN*
*    SUCH SECTION.                                                       *
*  "(D) OTHER DEFINITIONS.-FOR PURPOSES OF THIS SECTION-                 *
*      "(1) ELIGIBILITY PERIOD.-                                         *
*          "(A) IN GENERAL.-THE TERM 'ELIGIBILITY PERIOD' MEANS THE      *
*        PERIOD BEGINNING AFTER JULY 27, 1992, AND ENDING BEFORE JANUARY *
*        1, 1993.                                                        *
*          "(B) BINDING CONTRACTS.-A RESIDENCE SHALL BE TREATED AS       *
*        PURCHASED DURING THE ELIGIBILITY PERIOD IF-                     *
*              "(I) DURING THE ELIGIBILITY PERIOD, THE PURCHASER ENTERS  *
*            INTO A BINDING CONTRACT TO PURCHASE THE RESIDENCE, AND      *
*              "(II) THE PURCHASER PURCHASES AND OCCUPIES THE RESIDENCE  *
*            BEFORE APRIL 1, 1993.                                       *
*        FOR PURPOSES OF CLAUSE (I), A CONTRACT SHALL NOT FAIL TO BE     *
*        TREATED AS BINDING MERELY BECAUSE IT IS CONTINGENT ON FINANCING *
*        OR ON THE CONDITION OF THE RESIDENCE.                           *
*      "(2) PURCHASE.-THE TERM 'PURCHASE' MEANS ANY ACQUISITION OF       *
*    PROPERTY, BUT ONLY IF-                                              *
*          "(A) the property is not acquired from a person whose         *
*        relationship to the person acquiring it would result in the     *
*        disallowance of losses under section 267 or 707(b), and         *
*          "(B) the basis of the property in the hands of the person     *
*        acquiring it is not determined-                                 *
*              "(i) in whole or in part by reference to the adjusted     *
*            basis of such property in the hands of the person from whom *
*            acquired, or                                                *
*              "(ii) under section 1014(a) (relating to property acquired*
*            from a decedent).                                           *
*      "(3) PRINCIPAL RESIDENCE.-THE TERM 'PRINCIPAL RESIDENCE' HAS THE  *
*    SAME MEANING AS WHEN USED IN SECTION 1034.                          *
*      "(4) PURCHASE PRICE.-THE TERM 'PURCHASE PRICE' MEANS THE ADJUSTED *
*    BASIS OF THE RESIDENCE ON THE DATE OF ITS ACQUISITION.              *
*  "(E) CARRYOVER OF UNUSED CREDIT.-                                     *
*      "(1) IN GENERAL.-IF-                                              *
*          "(A) THE CREDIT ALLOWABLE UNDER SUBSECTION (A) EXCEEDS        *
*          "(B) THE LIMITATION IMPOSED BY SECTION 26(A) REDUCED BY THE   *
*        SUM OF THE CREDITS ALLOWABLE UNDER SECTIONS 21 AND 22,          *
*    SUCH EXCESS SHALL BE CARRIED TO THE SUCCEEDING TAXABLE YEAR AND     *
*    SHALL BE ALLOWABLE UNDER SUBSECTION (A) FOR SUCH SUCCEEDING TAXABLE *
*    YEAR.                                                               *
*      "(2) 5-YEAR LIMIT ON CARRYFORWARD.-No amount may be carried under *
*    paragraph (1) to any taxable year after the 5th taxable year after  *
*    the taxable year in which the residence is purchased.               *
*  "(f) RECAPTURE OF CREDIT FOR CERTAIN DISPOSITIONS.-                   *
*      "(1) IN GENERAL.-EXCEPT AS PROVIDED IN PARAGRAPHS (2) AND (3), IF *
*    THE TAXPAYER DISPOSES OF PROPERTY WITH RESPECT TO THE PURCHASE OF   *
*    WHICH A CREDIT WAS ALLOWED UNDER SUBSECTION (A) AND SUCH DISPOSITION*
*    OCCURS AT ANY TIME WITHIN 36 MONTHS AFTER THE DATE THE TAXPAYER     *
*    ACQUIRED THE PROPERTY AS HIS PRINCIPAL RESIDENCE, THEN THE TAX      *
*    IMPOSED UNDER THIS CHAPTER FOR THE TAXABLE YEAR IN WHICH THE        *
*    DISPOSITION OCCURS IS INCREASED BY AN AMOUNT EQUAL TO THE AMOUNT    *
*    ALLOWED AS A CREDIT FOR THE PURCHASE OF SUCH PROPERTY.              *
*      "(2) ACQUISITION OF NEW RESIDENCE.-IF, IN CONNECTION WITH A       *
*    DISPOSITION DESCRIBED IN PARAGRAPH (1) AND WITHIN THE APPLICABLE    *
*    PERIOD PRESCRIBED IN SECTION 1034, THE TAXPAYER PURCHASES A NEW     *
*    PRINCIPAL RESIDENCE, THEN PARAGRAPH (1) SHALL NOT APPLY AND THE TAX *
*    IMPOSED BY THIS CHAPTER FOR THE TAXABLE YEAR IN WHICH THE NEW       *
*    PRINCIPAL RESIDENCE IS PURCHASED IS INCREASED TO THE EXTENT THE     *
*    AMOUNT OF THE CREDIT THAT COULD BE CLAIMED UNDER THIS SECTION ON THE*
*    PURCHASE OF THE NEW RESIDENCE (WERE SUCH RESIDENCE THE FIRST        *
*    RESIDENCE PURCHASED DURING THE ELIGIBILITY PERIOD) IS LESS THAN THE *
*    AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER UNDER THIS SECTION.        *
*      "(3) DEATH OF OWNER; CASUALTY LOSS; INVOLUNTARY CONVERSION;       *
*    ETC.-PARAGRAPH (1) SHALL NOT APPLY TO-                              *
*          "(A) A DISPOSITION OF A RESIDENCE MADE ON ACCOUNT OF THE DEATH*
*        OF ANY INDIVIDUAL HAVING A LEGAL OR EQUITABLE INTEREST THEREIN  *
*        OCCURRING DURING THE 36-MONTH PERIOD REFERRED TO IN PARAGRAPH   *
*        (1),                                                            *
*          "(B) A DISPOSITION OF THE OLD RESIDENCE IF IT IS SUBSTANTIALLY*
*        OR COMPLETELY DESTROYED BY A CASUALTY DESCRIBED IN SECTION      *
*        165(C)(3) OR COMPULSORILY OR INVOLUNTARILY CONVERTED (WITHIN THE*
*        MEANING OF SECTION 1033(A)), OR                                 *
*          "(C) A DISPOSITION PURSUANT TO A SETTLEMENT IN A DIVORCE OR   *
*        LEGAL SEPARATION PROCEEDING WHERE THE RESIDENCE IS SOLD OR THE  *
*        OTHER SPOUSE RETAINS THE RESIDENCE AS A PRINCIPAL RESIDENCE."   *
*  (B) CLERICAL AMENDMENT.-THE TABLE OF SECTIONS FOR SUBPART A OF PART IV*
*OF SUBCHAPTER A OF CHAPTER 1 IS AMENDED BY INSERTING AFTER THE ITEM     *
*RELATING TO SECTION 22 THE FOLLOWING NEW ITEM:                          *
*"Sec. 23. Purchase of principal residence by  first -time  homebuyer. "     *
*  (c) EFFECTIVE DATE.-THE AMENDMENTS MADE BY THIS SECTION SHALL APPLY TO*
*TAXABLE YEARS ENDING ON OR AFTER JULY 28, 1992.                         *


Hope this helps.....

And now, to really confuse the issue, here is HR 11's history for August...

08/04/92 138 Cong Rec S 11485 Reported in the Senate, with an amendment in
                              the nature of a substitute, on Monday,
                              August 3, 1992, after the recess of the
                              Senate
08/07/92 138 Cong Rec S 11959 Specter Amendment No. 2923, submitted and
                              ordered to lie on the table
08/10/92 138 Cong Rec S 12091 Senate reached a unanimous-consent agreement
                              providing for the consideration of the bill,
                              on Tuesday, August 11
08/11/92 138 Cong Rec S 12120 Senate began consideration of the bill,
                              with a modified committee amendment in the
                              nature of a substitute, taking action on
                              amendments proposed thereto
08/11/92 138 Cong Rec S 12254 Senate tabled Chafee/Durenberger Amendment
                              No. 2933, to strike the full deductible for
                              an IRA and retain the provisions regarding
                              penalty-free withdrawls for current IRA's,
                              by a recorded vote of 72 yeas and 25 nays
                              (D 44-11; R 28-14) (Vote No. 187)

08/11/92 138 Cong Rec S 12274 Metzenbaum/Rudman Amendment No. 2931, to
                              limit individuals eligible to use IRA
                              deductions and simplified IRA's, pending in
                              the Senate
08/11/92 138 Cong Rec S 12275 Dole (for Packwood) Amendment No. 2934
                              (to Amendment No. 2931), to establish a
                              credit for the purchase of a principal
                              residence by a first-time home buyer,
                              pending in the Senate
08/11/92 138 Cong Rec S 12275 Senate will continue consideration of the
                              bill and amendments pending thereto, on
                              Wednesday, August 12
08/11/92 138 Cong Rec S 12361 Metzenbaum (and Rudman) Amendment No.
                              2931, submitted
08/11/92 138 Cong Rec S 12361 Simon Amendment No. 2932, submitted and
                              ordered to lie on the table
08/11/92 138 Cong Rec S 12361 Chafee Amendment No. 2933, submitted
08/11/92 138 Cong Rec S 12362 Packwood Amendment No. 2934, submitted
08/12/92 138 Cong Rec S 12419 Senate continued consideration of the bill,
                              with a modified committee amendment in the
                              nature of a substitute, taking action on
                              amendments proposed thereto
08/12/92 138 Cong Rec S 12419 Senate adopted Metzenbaum/Rudman Modified
                              Amendment No. 2931, to limit individuals
                              eligible to use IRA deductions and
                              simplified IRA's, by voice vote
08/12/92 138 Cong Rec S 12419 Senate adopted Dole (for Packwood) Modified
                              Amendment No. 2934 (to Amendment No. 2931),
                              to establish a credit for the purchase of a
                              principal residence by a first-time home
                              buyer, by voice vote
08/12/92 138 Cong Rec S 12428 Senate rejected a motion to waive section
                              311(a) of the Cong. Budget Act with respect
                              to consideration of Mack Amend. No. 2936, to
                              provide for a maximum longterm capital gains
                              rate of 15 percent and indexing of certain
                              capital assets, by a recorded vote of 37
                              yeas and 57 nays (D 5-50; R 32-7) (Vote No.
                              187) -- three-fifths of those Senators duly
                              chosen and sworn not having voted in the
                              affirmative
08/12/92 138 Cong Rec S 12428 Subsequently, a point of order that Mack
                              Amendment No. 2936 was in violation of the
                              Congressional Budget Act was sustained, and
                              the amendment thus fell
08/12/92 138 Cong Rec S 12458 Senate rejected a motion to waive section
                              306 of the Cong. Budget Act with respect to
                              consid. of Bradley Wellstone Amend. No. 2938
                              - to auth. funds for the Jobs Corps, to make
                              grants to community colleges that serve
                              economically distressed central cities, and
                              to establish a Neighborhood Recon. Corps.,
                              by a recorded vote of 14 yeas and 80 nays
                              (D 12-42; R 2-38)(Vote No. 188)-three-fifths
                              of those present not voting in the affirm.
08/12/92 138 Cong Rec S 12458 Subsequently, a point of order that the
                              Bradley Wellstone Amendment No. 2938 was in
                              violation of the Congressional Budget Act of
                              1974 was sustained, and the Amendment thus
                              fell
08/12/92 138 Cong Rec S 12470 Dole Amendment No. 2939, to extend the
                              section 29 credit for 8 months while
                              reducing the period other provisions are
                              extended to 15 months, pending in the Senate
08/12/92 138 Cong Rec S 12472 Senate reached a unanimous-consent time
                              agreement providing for further
                              consideration of the pending amendment and
                              amendments to be proposed thereto
08/12/92 138 Cong Rec S 12686 Mack Amendment No. 2936, submitted
08/12/92 138 Cong Rec S 12686 Cosponsors added to Amendment No. 2934 --
                              Senators Nickles, Bentsen, Graham,
                              Lieberman, Hollings, Wofford, Seymour,
                              Dodd, Kasten, Domenici, and Dole
08/12/92 138 Cong Rec S 12689 Bradley (and Wellstone) Amendment No. 2938,
                              submitted
08/12/92 138 Cong Rec S 12691 Dole (and others) Amendment No. 2939,
                              submitted


This bill passed the house on 7/2/92 and odds are it will pass the senate in
an amemded form.



-- 
David James Miller                        Architecture&Systems Evolution
Mead Data Central, B6F3                   (513) 865-7441
PO Box 933                                davidm@meaddata.com
Dayton Ohio 45401                         I speak for me, not MDC