| 1 | 1 | | II |
|---|
| 2 | 2 | | 119THCONGRESS |
|---|
| 3 | 3 | | 1 |
|---|
| 4 | 4 | | STSESSION S. 969 |
|---|
| 5 | 5 | | To amend the Internal Revenue Code of 1986 to deny interest and deprecia- |
|---|
| 6 | 6 | | tion deductions for taxpayers owning 50 or more single family properties. |
|---|
| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
|---|
| 8 | 8 | | MARCH11 (legislative day, MARCH10), 2025 |
|---|
| 9 | 9 | | Mr. W |
|---|
| 10 | 10 | | ARNOCK(for himself, Ms. SMITH, Mr. WYDEN, Ms. BALDWIN, Ms. |
|---|
| 11 | 11 | | W |
|---|
| 12 | 12 | | ARREN, Mr. GALLEGO, Mr. REED, Mr. SANDERS, Ms. KLOBUCHAR, |
|---|
| 13 | 13 | | Mr. W |
|---|
| 14 | 14 | | ELCH, Mr. BLUMENTHAL, and Mr. BOOKER) introduced the fol- |
|---|
| 15 | 15 | | lowing bill; which was read twice and referred to the Committee on Fi- |
|---|
| 16 | 16 | | nance |
|---|
| 17 | 17 | | A BILL |
|---|
| 18 | 18 | | To amend the Internal Revenue Code of 1986 to deny inter- |
|---|
| 19 | 19 | | est and depreciation deductions for taxpayers owning |
|---|
| 20 | 20 | | 50 or more single family properties. |
|---|
| 21 | 21 | | Be it enacted by the Senate and House of Representa-1 |
|---|
| 22 | 22 | | tives of the United States of America in Congress assembled, 2 |
|---|
| 23 | 23 | | SECTION 1. SHORT TITLE. 3 |
|---|
| 24 | 24 | | This Act may be cited as the ‘‘Stop Predatory Invest-4 |
|---|
| 25 | 25 | | ing Act’’. 5 |
|---|
| 26 | 26 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 27 | 27 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
|---|
| 28 | 28 | | •S 969 IS |
|---|
| 29 | 29 | | SEC. 2. DISALLOWANCE OF INTEREST DEDUCTION FOR DIS-1 |
|---|
| 30 | 30 | | QUALIFIED SINGLE FAMILY PROPERTY OWN-2 |
|---|
| 31 | 31 | | ERS. 3 |
|---|
| 32 | 32 | | (a) I |
|---|
| 33 | 33 | | NGENERAL.—Section 163 of the Internal Rev-4 |
|---|
| 34 | 34 | | enue Code of 1986 is amended by redesignating subsection 5 |
|---|
| 35 | 35 | | (n) as subsection (o) and by inserting after subsection (m) 6 |
|---|
| 36 | 36 | | the following new subsection: 7 |
|---|
| 37 | 37 | | ‘‘(n) I |
|---|
| 38 | 38 | | NTERESTPAID BYCERTAINDISQUALIFIED 8 |
|---|
| 39 | 39 | | S |
|---|
| 40 | 40 | | INGLEFAMILYPROPERTYOWNERS.— 9 |
|---|
| 41 | 41 | | ‘‘(1) I |
|---|
| 42 | 42 | | N GENERAL.—In the case of a disquali-10 |
|---|
| 43 | 43 | | fied single family property owner, no deduction shall 11 |
|---|
| 44 | 44 | | be allowed under this chapter for any interest paid 12 |
|---|
| 45 | 45 | | or accrued in connection with any single family resi-13 |
|---|
| 46 | 46 | | dential rental property owned (directly or indirectly) 14 |
|---|
| 47 | 47 | | by such disqualified single family property owner. 15 |
|---|
| 48 | 48 | | ‘‘(2) E |
|---|
| 49 | 49 | | XCEPTION.— 16 |
|---|
| 50 | 50 | | ‘‘(A) I |
|---|
| 51 | 51 | | N GENERAL.—Paragraph (1) shall 17 |
|---|
| 52 | 52 | | not apply with respect to interest paid or ac-18 |
|---|
| 53 | 53 | | crued in the taxable year in which such single 19 |
|---|
| 54 | 54 | | family residential rental property is sold. 20 |
|---|
| 55 | 55 | | ‘‘(B) E |
|---|
| 56 | 56 | | XCEPTION.—Subparagraph (A) 21 |
|---|
| 57 | 57 | | shall not apply unless the sale described in such 22 |
|---|
| 58 | 58 | | subparagraph is— 23 |
|---|
| 59 | 59 | | ‘‘(i) a sale to an individual for use as 24 |
|---|
| 60 | 60 | | the principle residence of the individual 25 |
|---|
| 61 | 61 | | (within the meaning of section 121), or 26 |
|---|
| 62 | 62 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 63 | 63 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
|---|
| 64 | 64 | | •S 969 IS |
|---|
| 65 | 65 | | ‘‘(ii) a sale to any qualified nonprofit 1 |
|---|
| 66 | 66 | | organization. 2 |
|---|
| 67 | 67 | | ‘‘(C) Q |
|---|
| 68 | 68 | | UALIFIED NONPROFIT ORGANIZA -3 |
|---|
| 69 | 69 | | TION.— 4 |
|---|
| 70 | 70 | | ‘‘(i) I |
|---|
| 71 | 71 | | N GENERAL.—For purposes of 5 |
|---|
| 72 | 72 | | this paragraph, the term ‘qualified non-6 |
|---|
| 73 | 73 | | profit organization’ means any organiza-7 |
|---|
| 74 | 74 | | tion which— 8 |
|---|
| 75 | 75 | | ‘‘(I) is not organized for profit, 9 |
|---|
| 76 | 76 | | and 10 |
|---|
| 77 | 77 | | ‘‘(II) has as a principal purpose 11 |
|---|
| 78 | 78 | | the creation, development, or preser-12 |
|---|
| 79 | 79 | | vation of affordable housing. 13 |
|---|
| 80 | 80 | | ‘‘(ii) C |
|---|
| 81 | 81 | | ERTAIN ORGANIZATIONS IN -14 |
|---|
| 82 | 82 | | CLUDED.—The term ‘qualified nonprofit 15 |
|---|
| 83 | 83 | | organization’ shall include— 16 |
|---|
| 84 | 84 | | ‘‘(I) any community development 17 |
|---|
| 85 | 85 | | corporation (as defined in section 18 |
|---|
| 86 | 86 | | 204(b) of the Department of Veterans 19 |
|---|
| 87 | 87 | | Affairs and Housing and Urban De-20 |
|---|
| 88 | 88 | | velopment, and Independent Agencies 21 |
|---|
| 89 | 89 | | Appropriations Act, 1997 (12 U.S.C. 22 |
|---|
| 90 | 90 | | 1715z–11a(b)), 23 |
|---|
| 91 | 91 | | ‘‘(II) any community housing de-24 |
|---|
| 92 | 92 | | velopment organization (as defined in 25 |
|---|
| 93 | 93 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 94 | 94 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
|---|
| 95 | 95 | | •S 969 IS |
|---|
| 96 | 96 | | section 104 of the Cranston-Gonzales 1 |
|---|
| 97 | 97 | | National Affordable Housing Act (42 2 |
|---|
| 98 | 98 | | U.S.C. 12704), 3 |
|---|
| 99 | 99 | | ‘‘(III) any community-based de-4 |
|---|
| 100 | 100 | | velopment organization qualified 5 |
|---|
| 101 | 101 | | under section 570.204 of title 24, 6 |
|---|
| 102 | 102 | | Code of Federal Regulations, as in ef-7 |
|---|
| 103 | 103 | | fect on the date of the enactment of 8 |
|---|
| 104 | 104 | | this subsection, 9 |
|---|
| 105 | 105 | | ‘‘(IV) any land bank, 10 |
|---|
| 106 | 106 | | ‘‘(V) any resident-owned coopera-11 |
|---|
| 107 | 107 | | tive or community land trust, and 12 |
|---|
| 108 | 108 | | ‘‘(VI) any subsidiary of a public 13 |
|---|
| 109 | 109 | | housing agency (as defined in section 14 |
|---|
| 110 | 110 | | 3(b)(6) of the United States Housing 15 |
|---|
| 111 | 111 | | Act of 1937 (42 U.S.C. 1437a(b)(6)). 16 |
|---|
| 112 | 112 | | ‘‘(iii) L |
|---|
| 113 | 113 | | AND BANK.—For purposes of 17 |
|---|
| 114 | 114 | | this subparagraph, the term ‘land bank’ 18 |
|---|
| 115 | 115 | | means a government entity, agency, or pro-19 |
|---|
| 116 | 116 | | gram, or a special purpose nonprofit entity 20 |
|---|
| 117 | 117 | | formed by one or more units of govern-21 |
|---|
| 118 | 118 | | ment in accordance with State or local 22 |
|---|
| 119 | 119 | | land bank enabling law, that has been des-23 |
|---|
| 120 | 120 | | ignated by one or more State or local gov-24 |
|---|
| 121 | 121 | | ernments to acquire, steward, and dispose 25 |
|---|
| 122 | 122 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 123 | 123 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
|---|
| 124 | 124 | | •S 969 IS |
|---|
| 125 | 125 | | of vacant, abandoned, or other problem 1 |
|---|
| 126 | 126 | | properties in accordance with locally-deter-2 |
|---|
| 127 | 127 | | mined priorities and goals. 3 |
|---|
| 128 | 128 | | ‘‘(iv) C |
|---|
| 129 | 129 | | OMMUNITY LAND TRUST .—For 4 |
|---|
| 130 | 130 | | purposes of this subparagraph, the term 5 |
|---|
| 131 | 131 | | ‘community land trust’ means a nonprofit 6 |
|---|
| 132 | 132 | | organization or State or local government 7 |
|---|
| 133 | 133 | | or instrumentality that— 8 |
|---|
| 134 | 134 | | ‘‘(I) use a ground lease or deed 9 |
|---|
| 135 | 135 | | covenant with an affordability period 10 |
|---|
| 136 | 136 | | of at least 30 years or more to— 11 |
|---|
| 137 | 137 | | ‘‘(aa) make rental and 12 |
|---|
| 138 | 138 | | homeownership units affordable 13 |
|---|
| 139 | 139 | | to households; and 14 |
|---|
| 140 | 140 | | ‘‘(bb) stipulate a preemptive 15 |
|---|
| 141 | 141 | | option to purchase the affordable 16 |
|---|
| 142 | 142 | | rentals or homeownership units 17 |
|---|
| 143 | 143 | | so that the affordability of the 18 |
|---|
| 144 | 144 | | units is preserved for successive 19 |
|---|
| 145 | 145 | | income-eligible households; and 20 |
|---|
| 146 | 146 | | ‘‘(II) monitors properties to en-21 |
|---|
| 147 | 147 | | sure affordability is preserved. 22 |
|---|
| 148 | 148 | | ‘‘(3) D |
|---|
| 149 | 149 | | ISQUALIFIED SINGLE FAMILY PROPERTY 23 |
|---|
| 150 | 150 | | OWNER.—For purposes of this subsection— 24 |
|---|
| 151 | 151 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 152 | 152 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
|---|
| 153 | 153 | | •S 969 IS |
|---|
| 154 | 154 | | ‘‘(A) IN GENERAL.—The term ‘disqualified 1 |
|---|
| 155 | 155 | | single family property owner’ means, with re-2 |
|---|
| 156 | 156 | | spect to any taxable year, any taxpayer who 3 |
|---|
| 157 | 157 | | owns (directly or indirectly) 50 or more single 4 |
|---|
| 158 | 158 | | family residential rental properties. 5 |
|---|
| 159 | 159 | | ‘‘(B) A |
|---|
| 160 | 160 | | GGREGATION RULES .—All persons 6 |
|---|
| 161 | 161 | | treated as a single employer under subsection 7 |
|---|
| 162 | 162 | | (a) or (b) of section 52, or subsection (m) or 8 |
|---|
| 163 | 163 | | (o) of section 414, shall be treated as one tax-9 |
|---|
| 164 | 164 | | payer for purposes of this section. 10 |
|---|
| 165 | 165 | | ‘‘(C) M |
|---|
| 166 | 166 | | ODIFICATIONS.— 11 |
|---|
| 167 | 167 | | ‘‘(i) I |
|---|
| 168 | 168 | | N GENERAL.—For purposes of 12 |
|---|
| 169 | 169 | | applying subparagraph (B)— 13 |
|---|
| 170 | 170 | | ‘‘(I) section 52(a) shall be ap-14 |
|---|
| 171 | 171 | | plied by substituting ‘component 15 |
|---|
| 172 | 172 | | members’ for ‘members’, and 16 |
|---|
| 173 | 173 | | ‘‘(II) for purposes of applying 17 |
|---|
| 174 | 174 | | section 52(b), the term ‘trade or busi-18 |
|---|
| 175 | 175 | | ness’ shall include any activity treated 19 |
|---|
| 176 | 176 | | as a trade or business under para-20 |
|---|
| 177 | 177 | | graph (5) or (6) of section 469(c) (de-21 |
|---|
| 178 | 178 | | termined without regard to the phrase 22 |
|---|
| 179 | 179 | | ‘To the extent provided in regulations’ 23 |
|---|
| 180 | 180 | | in such paragraph (6)). 24 |
|---|
| 181 | 181 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 182 | 182 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
|---|
| 183 | 183 | | •S 969 IS |
|---|
| 184 | 184 | | ‘‘(ii) COMPONENT MEMBER .—For 1 |
|---|
| 185 | 185 | | purposes of this paragraph, the term ‘com-2 |
|---|
| 186 | 186 | | ponent member’ has the meaning given 3 |
|---|
| 187 | 187 | | such term by section 1563(b), except that 4 |
|---|
| 188 | 188 | | the determination shall be made without 5 |
|---|
| 189 | 189 | | regard to section 1563(b)(2). 6 |
|---|
| 190 | 190 | | ‘‘(iii) N |
|---|
| 191 | 191 | | O INFERENCE.—The modifica-7 |
|---|
| 192 | 192 | | tions made by clause (i) shall not be con-8 |
|---|
| 193 | 193 | | strued to create any inference with respect 9 |
|---|
| 194 | 194 | | to the proper application of section 52 with 10 |
|---|
| 195 | 195 | | respect to any other provision of this title. 11 |
|---|
| 196 | 196 | | ‘‘(4) S |
|---|
| 197 | 197 | | INGLE FAMILY RESIDENTIAL RENTAL 12 |
|---|
| 198 | 198 | | PROPERTY.—For purposes of this subsection— 13 |
|---|
| 199 | 199 | | ‘‘(A) I |
|---|
| 200 | 200 | | N GENERAL.—The term ‘single fam-14 |
|---|
| 201 | 201 | | ily residential rental property’ means— 15 |
|---|
| 202 | 202 | | ‘‘(i) any residential rental property (as 16 |
|---|
| 203 | 203 | | defined in section 168(e)(2)(A)(i)) which 17 |
|---|
| 204 | 204 | | contains 4 or fewer dwelling units (as de-18 |
|---|
| 205 | 205 | | fined in section 168(e)(2)(A)(ii)(I)), and 19 |
|---|
| 206 | 206 | | ‘‘(ii) improvements to real property 20 |
|---|
| 207 | 207 | | directly related to such dwelling units lo-21 |
|---|
| 208 | 208 | | cated on the site of such dwelling units. 22 |
|---|
| 209 | 209 | | For purposes of clause (i), each townhouse or 23 |
|---|
| 210 | 210 | | rowhouse shall be treated as a separate build-24 |
|---|
| 211 | 211 | | ing. 25 |
|---|
| 212 | 212 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 213 | 213 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 |
|---|
| 214 | 214 | | •S 969 IS |
|---|
| 215 | 215 | | ‘‘(B) EXCEPTION FOR CERTAIN PROP -1 |
|---|
| 216 | 216 | | ERTIES.—Such term shall not include any resi-2 |
|---|
| 217 | 217 | | dential rental property (as so defined)— 3 |
|---|
| 218 | 218 | | ‘‘(i) with respect to which a credit is 4 |
|---|
| 219 | 219 | | allowed under section 42 for such taxable 5 |
|---|
| 220 | 220 | | year or any property, or 6 |
|---|
| 221 | 221 | | ‘‘(ii) which— 7 |
|---|
| 222 | 222 | | ‘‘(I) was constructed by the tax-8 |
|---|
| 223 | 223 | | payer, or 9 |
|---|
| 224 | 224 | | ‘‘(II) acquired by the taxpayer 10 |
|---|
| 225 | 225 | | after its construction but before the 11 |
|---|
| 226 | 226 | | first date on which any dwelling unit 12 |
|---|
| 227 | 227 | | in such property was occupied by a 13 |
|---|
| 228 | 228 | | resident. 14 |
|---|
| 229 | 229 | | ‘‘(5) R |
|---|
| 230 | 230 | | EGULATIONS.—The Secretary shall pre-15 |
|---|
| 231 | 231 | | scribe such regulations as may be necessary or ap-16 |
|---|
| 232 | 232 | | propriate to carry out the purposes of this sub-17 |
|---|
| 233 | 233 | | section, including regulations to prevent the avoid-18 |
|---|
| 234 | 234 | | ance of the purposes of this subsection.’’. 19 |
|---|
| 235 | 235 | | (b) A |
|---|
| 236 | 236 | | PPLICATION TOCAPITALIZEDAMOUNTS.— 20 |
|---|
| 237 | 237 | | (1) I |
|---|
| 238 | 238 | | N GENERAL.—Section 263A(f)(2) of the 21 |
|---|
| 239 | 239 | | Internal Revenue Code of 1986 is amended by add-22 |
|---|
| 240 | 240 | | ing at the end the following new subparagraph: 23 |
|---|
| 241 | 241 | | ‘‘(D) E |
|---|
| 242 | 242 | | XCEPTION FOR CERTAIN INTEREST 24 |
|---|
| 243 | 243 | | OF DISQUALIFIED SINGLE FAMILY PROPERTY 25 |
|---|
| 244 | 244 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 245 | 245 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
|---|
| 246 | 246 | | •S 969 IS |
|---|
| 247 | 247 | | OWNERS.—Subparagraph (A) shall not apply to 1 |
|---|
| 248 | 248 | | any interest for which a deduction would be dis-2 |
|---|
| 249 | 249 | | allowed under section 163(n).’’. 3 |
|---|
| 250 | 250 | | (2) C |
|---|
| 251 | 251 | | ARRYING CHARGES.—Section 266 of such 4 |
|---|
| 252 | 252 | | Code is amended— 5 |
|---|
| 253 | 253 | | (A) by striking ‘‘No deduction’’ and insert-6 |
|---|
| 254 | 254 | | ing the following: 7 |
|---|
| 255 | 255 | | ‘‘(a) I |
|---|
| 256 | 256 | | NGENERAL.—No deduction’’, and 8 |
|---|
| 257 | 257 | | (B) by adding at the end the following new 9 |
|---|
| 258 | 258 | | subsection: 10 |
|---|
| 259 | 259 | | ‘‘(b) S |
|---|
| 260 | 260 | | PECIALRULE FORCERTAININTEREST OFDIS-11 |
|---|
| 261 | 261 | | QUALIFIEDSINGLEFAMILYPROPERTYOWNERS.—No 12 |
|---|
| 262 | 262 | | election may be made under this section to treat as 13 |
|---|
| 263 | 263 | | chargeable to capital account any interest for which a de-14 |
|---|
| 264 | 264 | | duction would be disallowed under section 163(n).’’. 15 |
|---|
| 265 | 265 | | (c) E |
|---|
| 266 | 266 | | FFECTIVEDATE.—The amendments made by 16 |
|---|
| 267 | 267 | | this section shall apply to indebtedness incurred in taxable 17 |
|---|
| 268 | 268 | | years beginning after the date of the enactment of this 18 |
|---|
| 269 | 269 | | Act. 19 |
|---|
| 270 | 270 | | SEC. 3. DISALLOWANCE OF DEPRECIATION IN CONNEC-20 |
|---|
| 271 | 271 | | TION WITH PROPERTY USED BY DISQUALI-21 |
|---|
| 272 | 272 | | FIED SINGLE FAMILY PROPERTY OWNERS. 22 |
|---|
| 273 | 273 | | (a) I |
|---|
| 274 | 274 | | NGENERAL.—Section 167 of the Internal Rev-23 |
|---|
| 275 | 275 | | enue Code of 1986 is amended by redesignating subsection 24 |
|---|
| 276 | 276 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 277 | 277 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
|---|
| 278 | 278 | | •S 969 IS |
|---|
| 279 | 279 | | (i) as subsection (j) and by inserting after subsection (h) 1 |
|---|
| 280 | 280 | | the following new subsection: 2 |
|---|
| 281 | 281 | | ‘‘(i) D |
|---|
| 282 | 282 | | EDUCTIONDISALLOWED FOR DISQUALIFIED 3 |
|---|
| 283 | 283 | | S |
|---|
| 284 | 284 | | INGLEFAMILYPROPERTYOWNERS.— 4 |
|---|
| 285 | 285 | | ‘‘(1) I |
|---|
| 286 | 286 | | N GENERAL.—In the case of a disquali-5 |
|---|
| 287 | 287 | | fied single family property owner, no deduction shall 6 |
|---|
| 288 | 288 | | be allowed under this section for any single family 7 |
|---|
| 289 | 289 | | residential rental property owned by such disquali-8 |
|---|
| 290 | 290 | | fied single family property owner. 9 |
|---|
| 291 | 291 | | ‘‘(2) E |
|---|
| 292 | 292 | | XCEPTION.— 10 |
|---|
| 293 | 293 | | ‘‘(A) I |
|---|
| 294 | 294 | | N GENERAL.—Paragraph (1) shall 11 |
|---|
| 295 | 295 | | not apply with respect to depreciation deduction 12 |
|---|
| 296 | 296 | | which is allowable— 13 |
|---|
| 297 | 297 | | ‘‘(i) in connection with a single family 14 |
|---|
| 298 | 298 | | residential rental property, and 15 |
|---|
| 299 | 299 | | ‘‘(ii) in the taxable year in which such 16 |
|---|
| 300 | 300 | | single family residential rental property is 17 |
|---|
| 301 | 301 | | sold. 18 |
|---|
| 302 | 302 | | ‘‘(B) E |
|---|
| 303 | 303 | | XCEPTION.—Subparagraph (A) 19 |
|---|
| 304 | 304 | | shall not apply unless the sale described in 20 |
|---|
| 305 | 305 | | clause (ii) thereof is— 21 |
|---|
| 306 | 306 | | ‘‘(i) a sale to an individual for use as 22 |
|---|
| 307 | 307 | | the principle residence of the individual 23 |
|---|
| 308 | 308 | | (within the meaning of section 121), or 24 |
|---|
| 309 | 309 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S969.IS S969 |
|---|
| 310 | 310 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 |
|---|
| 311 | 311 | | •S 969 IS |
|---|
| 312 | 312 | | ‘‘(ii) a sale to any qualified nonprofit 1 |
|---|
| 313 | 313 | | organization (as defined in section 2 |
|---|
| 314 | 314 | | 163(n)(2)(C)). 3 |
|---|
| 315 | 315 | | ‘‘(3) D |
|---|
| 316 | 316 | | EFINITIONS.—For purposes of this sub-4 |
|---|
| 317 | 317 | | section, the terms ‘disqualified single family property 5 |
|---|
| 318 | 318 | | owner’ and ‘single family residential rental property’ 6 |
|---|
| 319 | 319 | | have the respective meanings given such terms under 7 |
|---|
| 320 | 320 | | section 163(n). 8 |
|---|
| 321 | 321 | | ‘‘(4) R |
|---|
| 322 | 322 | | EGULATIONS.—The Secretary shall pre-9 |
|---|
| 323 | 323 | | scribe such regulations as may be necessary or ap-10 |
|---|
| 324 | 324 | | propriate to carry out the purposes of this sub-11 |
|---|
| 325 | 325 | | section, including regulations to prevent the avoid-12 |
|---|
| 326 | 326 | | ance of the purposes of this subsection.’’. 13 |
|---|
| 327 | 327 | | (b) E |
|---|
| 328 | 328 | | FFECTIVEDATE.—The amendments made by 14 |
|---|
| 329 | 329 | | this section shall apply to property placed in service in 15 |
|---|
| 330 | 330 | | taxable years beginning after the date of the enactment 16 |
|---|
| 331 | 331 | | of this Act. 17 |
|---|
| 332 | 332 | | Æ |
|---|
| 333 | 333 | | VerDate Sep 11 2014 23:04 Mar 25, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S969.IS S969 |
|---|
| 334 | 334 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
|---|