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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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 AS-
SESSMENTS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
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by redesignating section 224 as section 225 and by insert-
ing 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 sub-
section (a) for the taxable year shall not exceed 
$5,000. 
‘‘(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED 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— 
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‘‘(I) the taxpayer’s modified ad-
justed 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
IN-
COME.—The term ‘modified adjusted gross in-
come’ means the adjusted gross income of the 
taxpayer for the taxable year increased by any 
amount excluded from gross income under sec-
tion 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 sub-
paragraph (B)(i)(II) shall be increased by 
an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2015’ for ‘cal-
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endar 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 AS-
SESSMENTS.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified home-
owners association assessments’ means regularly oc-
curring, mandatory financial assessments (other 
than a special assessment)— 
‘‘(A) paid by a taxpayer to a homeowners 
association with respect to the taxpayer’s prin-
cipal 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 
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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 ASSO-
CIATION ASSESSMENTS. 
‘‘(a) IN GENERAL.—Any homeowners association 
which receives qualified homeowners association assess-
ments from any individual during any calendar year shall 
make a return (at such time and in such form and man-
ner) setting forth— 
‘‘(1) the name, address, and TIN of each such 
individual, and 
‘‘(2) the amount of qualified homeowners asso-
ciation assessments received from each such indi-
vidual during the calendar year. 
‘‘(b) STATEMENTS TO BE FURNISHED TO INDIVID-
UALS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—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 sub-
section a written statement showing— 
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‘‘(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 sen-
tence 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 mean-
ings 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: 
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‘‘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. 
Æ 
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