A bill to amend the Internal Revenue Code of 1954 to allow nonrecognition of gain on certain rollovers of principal residences where the cost of purchasing the new residence is less than the adjusted sales price of the old residence, to extend to sixty months the period for the rollover of a principal residence, to allow a deduction for contributions to savings accounts established for the purpose of purchasing a home, and to deny the interest deduction to the extent the interest if on home loans in excess of $150,000.

Summary

Amends the Internal Revenue Code to allow, at the election of the taxpayer, a nonrecognition of gain on the sale of a residence to the extent that the cost of purchasing a new residence is not more than $100,000 less than the adjusted sales price of the old residence. Extends from 36 to 60 months the rollover period for nonrecognition of gain on the sale of a principal residence. Allows a deduction for cash contributions to a savings account created or organized for the benefit of the taxpayer (or the taxpayer and spouse if married) for the exclusive purpose of purchasing the taxpayer's principal residence. Limits the maximum annual deduction to $4,000, with a maximum lifetime deduction of $20,000. Exempts such accounts from income taxation. Excludes distributions from such accounts from gross income so long as they are used exclusively for the purchase of a principal residence. Imposes a ten percent surtax on distributions from individual housing accounts which are not used for the purchase of a principal residence. Prohibits the deduction of interest on that portion of home loans which exceeds $150,000.

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1 official file

• Introduced in House

  summary · EN · 9 July 1981

  Open at official source

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