Stop Predatory Investing Act

This bill limits tax breaks for very large landlords. If someone owns 50 or more single-family rental homes, they can no longer write off the interest they pay on loans for those homes or claim depreciation on them. The goal is to discourage big investors from buying up houses and to make it easier for families and nonprofits to buy homes instead.

There’s a narrow exception: in the year an owner sells a rental home to an individual who will live there as their main home, or to a qualified nonprofit (like a land bank or community land trust), they can take the interest or depreciation deduction for that year. “Single-family” here means rentals with four or fewer units, including townhouses or rowhouses as separate buildings. Some properties don’t count toward this rule, such as those that use the federal low‑income housing tax credit or homes the owner built and first sold or rented after construction.

Key points:

• Who is affected: Landlords who own 50+ single-family rental properties; related companies are counted together.
• What changes: No tax deductions for interest or depreciation on those rentals, except in the year a unit is sold to an owner‑occupant or a qualified nonprofit.
• What counts as “single-family” for this bill: Rentals with four or fewer units; townhouses/rowhouses count separately. Some affordable housing and newly built properties are excluded.
• When: The interest rule applies to new debt in tax years starting after the law takes effect; the depreciation rule applies to property placed in service in tax years starting after the law takes effect.