Family Renewal and Support Act of 1992

Summary

Family Renewal and Support Act of 1992 - Title I: Increase in Personal Exemption for Certain Dependent Children - Amends the Internal Revenue Code to increase the personal exemption for a dependent child who has not attained age 18 from $2,000 to $3,500. Provides for rounding inflation adjustments to tax tables to the nearest multiple of $10 (currently rounded to the next lowest multiple of $50). Title II: Retirement Savings Incentives - Subtitle A: Restoration IRA Deduction - Subtitle A: Restoration of IRA Deduction - Removes the limitations on deductions for individual retirement plans and provides a cost-of-living adjustment for deductible amounts. Subtitle B: Nondeductible Tax-Free IRAs - Establishes special individual retirement accounts that are nondeductible. Makes such accounts nontaxable if earnings on contributions are held for at least five years. Applies the early withdrawal penalty to distributions made before the end of the five-year period. Subtitle C: Penalty-Free Distributions - Provides exemptions from the ten-percent penalty on early withdrawals from individual retirement plans for: (1) first home purchases; (2) higher education expenses; and (3) financially devastating medical expenses. Title III: Credit for First-Time Homebuyers - Allows a first-time homebuyer who purchases a principal residence a tax credit of ten percent of the purchase price of such residence. Limits the credit to $5,000. Requires married individuals filing jointly to both be first-time homebuyers. Allows the use of 50 percent of the credit in the first taxable year in which the residence is purchased and the remaining 50 percent in the succeeding taxable year. Makes this credit applicable to residences acquired after February 1, 1992, and before January 1, 1993, or for which a binding contract is entered into during such period. Title IV: Deduction for Interest on Certain Educational Loans - Allows an income tax deduction for interest on certain indebtedness incurred to pay the educational expenses of the taxpayer, spouse, or taxpayer's child. (Under current law, such a loan must be secured by an interest in real property.) Reduces such expenses by the amount excludable from gross income for savings bonds used to pay higher education tuition and fees. Reduces the amount treated as home equity indebtedness by the amount treated as educational indebtedness. Provides that investment interest does not include educational loan interest. Sets forth reporting requirements for returns relating to educational interest.

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Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 9 July 1992

  Open at official source

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