“To amend the Internal Revenue Code of 1986 to establish first-time homebuyer savings accounts.”
No CRS summary available for this bill.
This section establishes a new above-the-line deduction for cash contributions by eligible individuals to a First-time Homebuyer Savings Account (FHSA), with an annual aggregate contribution limit of $10,000 across all such accounts maintained for the benefit of the individual. An eligible individual is one (and spouse, if married) with no ownership interest in a residential property during the prior three years; the deduction phases out for taxpayers with modified adjusted gross income over $200,000 ($400,000 for joint returns). FHSAs must be trusts administered by a qualified trustee (e.g., bank or insurance company), with nonforfeitable interests, no life insurance investments, and assets not commingled except in common funds; rollover contributions are permitted once per year within 60 days. Qualified homebuyer expenses eligible for tax-free distributions include principal residence purchase costs, construction costs (including land and permitting), and related expenses within three years of acquisition or completion; all other distributions are includible in gross income and subject to a 10% additional tax (except excess contributions returned by the tax return due date). The Secretary of the Treasury must annually publish the estimated national average single-family home price.