“A bill to amend the Internal Revenue Code of 1986 to create American dream accounts.”
No CRS summary available for this bill.
This section establishes American dream accounts as tax-exempt trusts (subject to unrelated business income tax) available exclusively to U.S. citizens for saving toward a first-time home purchase. Contributions, which must be in cash, are limited to the lesser of $7,500 ($10,000 if the beneficiary is age 35 or older) annually or $250,000 lifetime aggregate across all such accounts (excluding rollovers). Distributions are generally includible in gross income under rules similar to annuities, except for qualified first-time homebuyer distributions—which are tax-free up to a $500,000 lifetime limit ($250,000 if jointly purchasing with another account holder)—provided the home is held for three years; early sale triggers income inclusion unless due to specified events (e.g., death, divorce, job loss, or relocation for qualified official extended duty over 50 miles).