Bill > HR4352

This bill, known as the HOMES Act (Houses Over Middle-Class Exploitation Schemes Act), aims to limit tax benefits for large-scale single-family residential property investors by denying interest and depreciation deductions for taxpayers who own 50 or more single-family residential rental properties. Specifically, the bill prevents such "disqualified single family property owners" from claiming tax deductions on interest paid for these properties and from taking depreciation deductions. However, the bill provides exceptions for sales of these properties to individual homeowners or qualified nonprofit organizations focused on affordable housing, such as community development corporations, land banks, and community land trusts. The bill defines single-family residential rental properties as residential properties with 4 or fewer dwelling units, treating each townhouse or rowhouse as a separate building. When calculating the 50-property threshold, the bill uses aggregation rules that treat related business entities as a single taxpayer. The legislation also includes provisions to prevent taxpayers from circumventing these restrictions, and the changes would apply to tax years beginning after the bill's enactment date. The underlying intent appears to be discouraging large-scale corporate property acquisition that could potentially reduce housing affordability for middle-class individuals.