Sponsors (9)
The bill seeks to discourage hoarding of single‑family homes and raise federal revenue by taxing excess holdings and denying tax benefits to targeted owners, but it does so by increasing taxes and reducing deductions for affected owners while adding compliance costs and legal uncertainty.
Homebuyers and renters could face less competition and downward pressure on prices if speculators are forced to sell excess single‑family homes.
Federal revenue is likely to increase from the new excise tax and narrower deductions, potentially funding public services or deficit reduction.
Taxpayers convicted under chapter 50B will lose mortgage interest and depreciation deductions, denying tax benefits to those held liable and reinforcing enforcement.
Homeowners and investors who hold excess single‑family homes will face higher excise tax liabilities if they do not sell by the deadline.
Covered homeowners will lose the mortgage interest deduction, increasing their after‑tax housing costs.
Covered owners cannot claim depreciation for single‑family rental residences, raising taxable income and tax bills for affected property owners.
Based on analysis of 3 sections of legislative text.
Imposes an excise tax on covered owners of excess single‑family homes and denies mortgage interest and depreciation deductions for those owners.
Introduced February 27, 2025 by Adam Smith · Last progress February 27, 2025
Creates a new federal tax penalty and removes two major tax benefits for certain owners of single‑family residences who are treated as “covered taxpayers” for failing to sell excess single‑family homes. Specifically, it imposes an excise tax on covered taxpayers and denies the mortgage interest deduction and depreciation deductions for single‑family residences owned by those taxpayers for taxable years after enactment. The measures rely on statutory definitions of “single‑family residence” and ownership rules in a referenced tax provision, apply to taxable years beginning after enactment, and require the IRS to implement and enforce the new excise tax and deduction denials.