I 

114TH CONGRESS 

2D SESSION H. R. 4696 

To amend the Internal Revenue Code of 1986 to allow a deduction for 

homeowners association assessments. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 3, 2016 

Ms. ESHOO (for herself and Mr. THOMPSON of California) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

deduction for homeowners association assessments. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘ Helping Our Middle5 Income Earners Act’’ or the ‘‘HOME Act’’. 

6 SEC. 2. DEDUCTION OF HOMEOWNERS ASSOCIATION AS7 SESSMENTS. 

8 (a) IN GENERAL.—Part VII of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 is amended 


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1 by redesignating section 224 as section 225 and by insert2 ing after section 223 the following new section: 

3 ‘‘SEC. 224. HOMEOWNERS ASSOCIATION ASSESSMENTS. 

4 ‘‘(a) IN GENERAL.—In the case of an individual, 

5 there shall be allowed as a deduction an amount equal to 

6 the qualified homeowners association assessments paid by 

7 the taxpayer during the taxable year. 

8 ‘‘(b) LIMITATIONS.— 

9 ‘‘(1) DOLLAR LIMITATION.—Except as provided 

10 in paragraph (2), the deduction allowed by sub11 section (a) for the taxable year shall not exceed 

12 $5,000. 

13 ‘‘(2) LIMITATION BASED ON MODIFIED AD14 JUSTED GROSS INCOME.— 

15 ‘‘(A) IN GENERAL.—The amount which 

16 would (but for this paragraph) be allowable as 

17 a deduction under this section shall be reduced 

18 (but not below zero) by the amount determined 

19 under subparagraph (B). 

20 ‘‘(B) AMOUNT OF REDUCTION.—The 

21 amount determined under this subparagraph is 

22 the amount which bears the same ratio to the 

23 amount which would be so taken into account 

24 as— 

25 ‘‘(i) the excess of— 


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1 ‘‘(I) the taxpayer’s modified ad2 justed gross income for such taxable 

3 year, over 

4 ‘‘(II) $100,000 ($150,000 in the 

5 case of a joint return), bears to 

6 ‘‘(ii) $15,000. 

7 ‘‘(C) MODIFIED ADJUSTED GROSS IN8 COME.—The term ‘modified adjusted gross in9 come’ means the adjusted gross income of the 

10 taxpayer for the taxable year increased by any 

11 amount excluded from gross income under sec12 tion 911, 931, or 933. 

13 ‘‘(D) COST-OF-LIVING ADJUSTMENT.— 

14 ‘‘(i) IN GENERAL.—In the case of any 

15 taxable year beginning in a calendar year 

16 after 2016, the dollar amounts under sub17 paragraph (B)(i)(II) shall be increased by 

18 an amount equal to— 

19 ‘‘(I) such dollar amount, multi20 plied by 

21 ‘‘(II) the cost-of-living adjust22 ment determined under section 1(f)(3) 

23 for the calendar year in which the tax24 able year begins, determined by sub25 stituting ‘calendar year 2015’ for ‘calVerDate Sep 11 2014 04:03 Mar 04, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4696.IH H4696

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1 endar year 1992’ in subparagraph (B) 

2 thereof. 

3 ‘‘(ii) ROUNDING.—If any amount 

4 after adjustment under clause (i) is not a 

5 multiple of $500, such amount shall be 

6 rounded to the next lower multiple of 

7 $500. 

8 ‘‘(c) QUALIFIED HOMEOWNERS ASSOCIATION AS9 SESSMENTS.—For purposes of this section— 

10 ‘‘(1) IN GENERAL.—The term ‘qualified home11 owners association assessments’ means regularly oc12 curring, mandatory financial assessments (other 

13 than a special assessment)— 

14 ‘‘(A) paid by a taxpayer to a homeowners 

15 association with respect to the taxpayer’s prin16 cipal residence (within the meaning of section 

17 121), 

18 ‘‘(B) that directly benefit the taxpayer’s 

19 principal residence, and 

20 ‘‘(C) the obligation of which to pay arises 

21 from the taxpayer’s mandatory and automatic 

22 membership in such homeowners association. 

23 ‘‘(2) HOMEOWNERS ASSOCIATION.—The term 

24 ‘homeowners association’ has the meaning given 


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1 such term in section 528(c)(1) (determined without 

2 regard to timeshare associations).’’. 

3 (b) INFORMATION REPORTING.—Subpart B of part 

4 III of subchapter A of chapter 61 of such Code is amended 

5 by adding at the end the following new section: 

6 ‘‘SEC. 6050X. RETURNS RELATED TO HOMEOWNERS ASSO7 CIATION ASSESSMENTS. 

8 ‘‘(a) IN GENERAL.—Any homeowners association 

9 which receives qualified homeowners association assess10 ments from any individual during any calendar year shall 

11 make a return (at such time and in such form and man12 ner) setting forth— 

13 ‘‘(1) the name, address, and TIN of each such 

14 individual, and 

15 ‘‘(2) the amount of qualified homeowners asso16 ciation assessments received from each such indi17 vidual during the calendar year. 

18 ‘‘(b) STATEMENTS TO BE FURNISHED TO INDIVID19 UALS WITH RESPECT TO WHOM INFORMATION IS RE20 QUIRED.—Every person required to make a return under 

21 subsection (a) shall furnish to each individual whose name 

22 is required to be set forth in such return under such sub23 section a written statement showing— 


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1 ‘‘(1) the name, address, and phone number of 

2 the information contact of the person required to 

3 make such return, and 

4 ‘‘(2) the information required by subsection (a) 

5 with respect to the individual. 

6 The written statement required under the preceding sen7 tence shall be furnished on or before January 31 of the 

8 year following the calendar year for which the return 

9 under subsection (a) was required to be made. 

10 ‘‘(c) DEFINITIONS.—For purposes of this section, the 

11 terms ‘homeowners association’ and ‘qualified homeowners 

12 association assessments’ shall have the respective mean13 ings given such terms by section 224.’’. 

14 (c) DEDUCTION NOT TREATED AS MISCELLANEOUS

15 ITEMIZED DEDUCTION.—Section 67(b) of such Code is 

16 amended by striking ‘‘and’’ at the end of paragraph (11), 

17 by striking the period at the end of paragraph (12) and 

18 inserting ‘‘, and’’, and by adding at the end the following 

19 new paragraph: 

20 ‘‘(13) the deduction under section 224 (relating 

21 to homeowners association assessments).’’. 

22 (d) CLERICAL AMENDMENT.—The table of sections 

23 for Part VII of subchapter B of chapter 1 of such Code 

24 is amended by striking the item relating to section 224 

25 and inserting the following: 


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‘‘Sec. 224. Homeowners association assessments. 

‘‘Sec. 225. Cross reference.’’. 

1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2015. 

Æ 


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