Stop Predatory Investing Act
Stop Predatory Investing Act
Plain Language Summary
# Stop Predatory Investing Act - Summary **What It Would Do:** This bill would prevent large-scale investors who own 50 or more single-family rental homes from claiming certain federal tax deductions. Specifically, these investors could no longer deduct interest payments on mortgages or depreciation costs on their rental properties. The bill aims to discourage corporate and institutional investors from buying up large numbers of single-family homes, which supporters argue drives up housing costs and reduces homes available for individual buyers. **Who It Affects and Key Provisions:** The bill primarily targets large real estate investment companies and wealthy investors with substantial single-family rental portfolios.
However, it includes exceptions for properties that qualify for low-income housing tax credits (programs designed to create affordable housing) and newly constructed rental properties. Regular landlords with fewer than 50 properties would not be affected. **Current Status:** The bill was introduced in the 119th Congress by Senator Raphael Warnock (D-GA) and is currently in committee, meaning it has not yet been voted on by the full Senate. It remains in the early stages of the legislative process.
CRS Official Summary
Stop Predatory Investing Act This bill prohibits a taxpayer who owns (directly or indirectly) 50 or more single-family residential rental properties (disqualified single-family property owner) from claiming a federal tax deduction for interest paid (or accrued) in connection with such properties or a federal tax deduction for depreciation in connection with such properties.The bill generally defines a single-family residential rental property as any residential rental property containing four or fewer dwelling units and improvements to real property related to such dwelling units.However, under the bill, a disqualified single-family property owner may still claim a tax deduction for interest and depreciation on (1) single-family residential rental property for which the low-income housing tax credit (LIHTC) may be claimed and (2) certain newly constructed single-family residential rental properties. (The LIHTC program awards tax credits for newly-constructed or substantially rehabilitated low-income housing.)The bill also allows a disqualified single-family property owner to claim a federal tax deduction for interest or depreciation in connection with a single-family residential rental property in the year such property is sold if it is sold toan individual for use as a principal residence;a non-profit organization that creates, develops, or preserves affordable housing;certain community development organizations;a land bank;any resident-owned cooperative or community land trust; ora public housing agency subsidiary.
Latest Action
Read twice and referred to the Committee on Finance.