Helping Our Middle-Income Earners Act

“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).”

“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.

“(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.”

“(13) the deduction under section 224 (relating to homeowners association assessments).”