Individual Housing Account Act of 1980

Summary

Individual Housing Account Act of 1980 - Amends the Internal Revenue Code to allow individual taxpayers an income tax deduction from gross income for cash contributions to an individual housing account. Limits the amount of such deduction to $2,500 ($5,000 for married couples) for a taxable year and to $25,000 in all taxable years. Prohibits any deduction which is claimed in a taxable year commencing more than nine years after the first such deduction was claimed. Reduces the amount of the annual deduction by $250 for each $1,000 by which a taxpayer's adjusted gross income exceeds $30,000. Defines "individual housing account" as a trust created for the exclusive benefit of an individual who has never owned his principal residence. Sets forth requirements for the establishment and maintenance of an individual housing account. Grants tax-exempt status upon an individual housing account trust. Excludes from the gross income of a trust beneficiary amounts distributed from a trust which are used exclusively in connection with the purchase of a principal residence for the beneficiary. Sets forth rules for the tax treatment of a trust and distributions from a trust in the case of divorce, improper distributions from a trust, and contributions to a trust in excess of the allowable amount. Prescribes a penalty equal to ten percent of the payments from a trust which are made for purposes other than the purchase of a principal residence. Requires the trustee of an individual housing account to file informational returns with the Secretary of the Treasury as required. Prescribes penalties for failure to file such returns. Treats as ordinary income, rather than capital gain, that portion of the gain from the sale or exchange of a principal residence purchased with funds from an individual housing account, which is attributable to the reduction of the taxpayer's basis in the residence as required by this Act.

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1 official file

• Introduced in House

  summary · EN · 14 May 1980

  Open at official source

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