A bill to amend the Internal Revenue Code of 1954 to provide for the establishment of, and the deduction of contributions to, housing savings accounts.

Summary

Amends the Internal Revenue Code to allow individual taxpayers who have attained the age of 18 an income tax deduction for contributions (cash or readily tradeable securities) to a savings account established for the exclusive purpose of financing the taxpayer's first principal residence. Limits the aggregate amount allowable as a deduction under this Act to any individual for any taxable year to 15 percent of such individual's adjusted gross income. Provides that the amount allowable as a deduction to all taxpayers for amounts paid or transferred to a house savings account may not exceed $1,500 ($3,000 for accounts of married couples). Provides for a $15,000 maximum lifetime deduction ($30,000 for joint returns), with annual inflation adjustments. Limits to ten years the period during which deductible contributions may be made to housing savings accounts. Prohibits any individual from being a beneficiary of more than one account. Excludes distributions from a housing savings account from the gross income of its beneficiary if such distributions are used exclusively for the purchase of a principal residence. Exempts a housing savings account from taxation. Provides for the forfeiture of such exemption where the taxpayer uses the account for certain prohibited purposes. Imposes a penalty on distributions from an account which are used for a prohibited purpose. Requires the trustee of a housing savings account to file a report on the maintenance of the account. Imposes a penalty for the failure to file any required report.

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Documents

1 official file

• Introduced in House

  summary · EN · 8 May 1985

  Open at official source

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