Tax Benefit for Homeownership Clarification Act

H.R. 516 · 115th Congress · Jan 13, 2017 · Lineage

A BILL

To amend the Internal Revenue Code of 1986 to reduce the mortgage interest deduction relating to acquisition indebtedness for certain taxpayers.

This Act may be cited as the “Tax Benefit for Homeownership Clarification Act”.

(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:”

(b)

Effective date— The amendment made by subsection (a) shall apply to amounts paid or incurred after December 31, 2017.