H.R. 4696 (HOME Act) introduced in the House of Representatives on March 3, 2016.
A new bill entitled “Helping Our Middle-Income Earners Act” (“HOME Act”) was introduced by Representative Anna G. Eshoo on March 3,2016, and has been referred to the House Committee on Ways and Means. The bill seeks to amend the Internal Revenue Code of 1986 to allow a deduction for homeowners association assessments.
If passed, this law would allow individual taxpayers an income-based tax deduction of up to $5,000, for qualified homeowners association assessments paid during the taxable year. The bill defines “qualified homeowners association assessments” as “regularly occurring, mandatory financial assessments: (1) that are paid by a taxpayer to a homeowners association for the taxpayer’s principal residence, (2) that directly benefit such residence, and (3) that arise from the taxpayer’s mandatory and automatic membership in such association”.
This bill would also require homeowners associations to file an informational tax return that sets forth the name, address, taxpayer identification number for taxpayers who pay assessments to the association, and the amount of such assessments.
See copy of proposed bill: H.R._4696_._Home_Act