H.R. 516 — Introduced in House

I 115th CONGRESS 1st Session H. R. 516 IN THE HOUSE OF REPRESENTATIVES January 13, 2017Mr. Ellison introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to reduce the mortgage interest deduction relating to acquisition indebtedness for certain taxpayers. 1. Short title This Act may be cited as the Tax Benefit for Homeownership Clarification Act. 2. Reduction in limitation on mortgage interest deduction relating to acquisition indebtedness for certain taxpayers (a) Acquisition indebtedness Clause (ii) of section 163(h)(3)(B) of the Internal Revenue Code of 1986 is amended to read as follows: (ii) Limitation The aggregate amount treated as acquisition indebtedness for any period shall not exceed— (I) $1,000,000 in the case of a joint return ($500,000 in the case of a married individual filing a separate return), and (II) the applicable amount in any other case. (iii) Applicable amount For purposes of clause (ii)(II), the applicable amount is as follows: For taxable years—The applicable amount is— Beginning in calendar year 2018$900,000 Beginning in calendar year 2019$800,000 Beginning in calendar year 2020$700,000 Beginning in calendar year 2021$600,000 Beginning in or after calendar year 2022$500,000. . (b) Effective date The amendment made by subsection (a) shall apply to amounts paid or incurred after December 31, 2017.