Tax Benefit for Homeownership Clarification Act

Bill: 114-hr-6492
Sponsor: full_name: Rep. Ellison, Keith [D-MN-5]
Introduced: 2016-12-08
Policy area: Taxation
Subjects: Housing finance and home ownership

Income tax deductions

Interest, dividends, interest rates
Latest action: action_date: 2016-12-08
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-12-08
action_desc: Introduced in House
text: <p><b>Tax Benefit for Homeownership Clarification Act </b></p> <p>This bill amends the Internal Revenue Code to reduce the limitation on the mortgage interest deduction for the acquisition indebtedness of certain taxpayers. (Acquisition indebtedness is indebtedness that: (1) is incurred in acquiring, constructing, or substantially improving any qualified residence of the taxpayer; and (2) is secured by such residence. It also includes refinancing of the debt in certain situations.) </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 6492 IN THE HOUSE OF REPRESENTATIVES December 8, 2016 Mr. Ellison 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 reduce the mortgage interest deduction relating to acquisition indebtedness for certain taxpayers.

1. Short title This Act may be cited as the Tax Benefit for Homeownership Clarification Act . 2. Reduction in limitation on mortgage interest deduction relating to acquisition indebtedness for certain taxpayers (a) Acquisition indebtedness Clause (ii) of section 163(h)(3)(B) of the Internal Revenue Code of 1986 is amended to read as follows: (ii) Limitation The aggregate amount treated as acquisition indebtedness for any period shall not exceed— (I) $1,000,000 in the case of a joint return ($500,000 in the case of a married individual filing a separate return), and (II) the applicable amount in any other case. (iii) Applicable amount For purposes of clause (ii)(II), the applicable amount is as follows: For taxable years— The applicable amount is— Beginning in calendar year 2017 $900,000 Beginning in calendar year 2018 $800,000 Beginning in calendar year 2019 $700,000 Beginning in calendar year 2020 $600,000 Beginning in or after calendar year 2021 $500,000. . (b) Effective date The amendment made by subsection (a) shall apply to amounts paid or incurred after December 31, 2016.