,,ii #aai? ,,congress #b;d ,session ,s4 #cicj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #bf1 #bjbf,mr4 ,m]kley 7= himself & ,mr4 ,hawley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to impose an excise tax on ! acquisition ( s+le-family resid5ces by h$ge fund taxpay]s1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,,hope 7,humans ov] ,private ,equity7 = ,home[n]%ip ,act4 #b4 ,excise tax on acquisition ( s+le-family resid5ces by h$ge fund taxpay]s 7a7 ,9 g5]al ,subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new *apt]3 #ej;,b ,s+le-family resid5ces ,sec4 #ejjj;,e4 ,newly acquir$ s+le-family resid5ces4 #ejjj;,e4 ,newly acquir$ s+le-family resid5ces 7a7 ,9 g5]al ,!re is h]eby impos$ ! acquisition ( any newly acquir$ s+le-family resid5ce by a h$ge fund taxpay] an am\nt equal to #ae p]c5t ( ! pur*ase price !re(4 7b7 ,newly acquir$ s+le-,family resid5ce ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m newly acquir$ s+le-family resid5ce means any resid5tial prop]ty :i*-- 7,a7 consi/s ( #a-to-#d dwell+ units1 & 7,b7 0 acquir$ by ! taxpay] 9 any taxable ye> :i* beg9s aft] ! date ( ! enactm5t ( ?is *apt]4 7#b7 ,exception ,a resid5tial prop]ty %all n be treat$ z a newly acquir$ s+le-family resid5ce if1 imm$iately aft] acquisition & at all times !reaft]1 su* prop]ty is-- 7,a7 n r5t$ or leas$1 & 7,b7 us$ z ! pr9cipal resid5ce 7)9 ! mean+ ( section #aba7 ( any p]son :o has an own]%ip int]e/ 9 ! h$ge fund taxpay] acquir+ su* taxpay]4 7c7 ,h$ge fund taxpay] ,= purposes ( ?is *apt]-- 7#a7 ,9 g5]al ,! t]m h$ge fund taxpay] means1 ) respect to any taxable ye>1 any applicable entity :i*-- 7,a7 manages funds pool$ f inve/ors1 7,b7 has #ej1jjj1jjj or m 9 net value or assets "u managem5t on any day dur+ ! taxable ye>1 & 7,c7 is a fiduci>y ) respect to su* inve/ors4 7#b7 ,applicable entity 7,a7 ,9 g5]al ,! t]m applicable entity means-- 7i7 any p>tn]%ip1 7ii7 any corporation1 or 7iii7 any real e/ate inve/m5t tru/4 7,b7 ,exceptions ,! t]m applicable entity %all n include-- 7i7 an organization :i* is describ$ 9 section #eja7;c77#c7 & exempt f tax "u section #eja7;a71 or 7ii7 an organization :i* is prim>ily engag$ 9 ! con/ruction or rehabilitation ( s+le-family resid5ces & :i* (f]s su* resid5ces = sale 9 ! ord9>y c\rse ( bus9ess4 7#c7 ,aggregation rules 7,a7 ,9 g5]al ,all p]sons :i* are treat$ z a s+le employ] "u subsections 7a7 & 7b7 ( section #eb %all be treat$ z a s+le p]son4 7,b7 ,modifications ,= purposes ( ?is subsection-- 7i7 section #eb7;a7 %all be appli$ by sub/itut+ compon5t memb]s = memb]s1 & 7ii7 = purposes ( apply+ section #eb7;b71 ! t]m trade or bus9ess %all include any activity treat$ z a trade or bus9ess "u p>agraph 7#e7 or 7#f7 ( section #dfi7;c7 7det]m9$ )\t reg>d to ! phrase ,to ! ext5t provid$ 9 regulations 9 su* p>agraph 7#f774 7,c7 ,compon5t memb] ,= purposes ( ?is p>agraph1 ! t]m compon5t memb] has ! mean+ giv5 su* t]m by section #aefc7;b71 except t ! det]m9ation %all be made )\t reg>d to section #aefc7;b77#b74 7d7 ,o!r def9itions & rules ,= purposes ( ?is section-- 7#a7 ,pur*ase price ,! t]m pur*ase price means ! adju/$ basis ( ! newly acquir$ s+le-family resid5ce on ! date su* resid5ce is pur*as$4 7#b7 ,acquisition ,a h$ge fund taxpay] %all be treat$ z acquir+ a s+le-family resid5ce if ! taxpay] acquires a majority own]%ip int]e/ 9 ! s+le-family resid5ce1 reg>dless ( ! p]c5tage ( t own]%ip int]e/4 4 7b7 ,cl]ical am5dm5t ,! table ( *apt]s = subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,*apt] #ej;,b--,excess s+le-family resid5ces 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #c4 ,corporate surtax on h$ge fund taxpay]s 7a7 ,9 g5]al ,section #aa ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,h$ge fund taxpay]s ,9 ! case ( a corporation :i* is describ$ 9 section #ejjj;,e7c71 ! p]c5tage "u subsection 7b7 %all be increas$ by #e p]c5tage po9ts4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjce4 #d4 ,disall[ance ( c]ta9 d$uctions tak5 9 connection ) s+le-family resid5ces ( h$ge fund taxpay]s 7a7 ,mortgage int]e/ 7#a7 ,9 g5]al ,section #afc ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7n7 z subsection 7o7 & by ins]t+ aft] subsection 7m7 ! foll[+ new subsection3 7n7 ,no d$uction = int]e/ on acquisition indebt$ness ( s+le-,family resid5ces ( c]ta9 taxpay]s 7#a7 ,9 g5]al ,9 ! case ( a h$ge fund taxpay]1 no d$uction %all be all[$ "u ?is *apt] ) respect to int]e/ paid or accru$ on acquisition indebt$ness ) respect to any s+le-family resid5ce4 7#b7 ,def9itions ,= purposes ( ?is subsection-- 7,a7 ,h$ge fund taxpay] ,! t]m h$ge fund taxpay] means1 = any taxable ye>1 any taxpay]-- 7i7 :o is describ$ 9 section #ejjj;,e7c71 & 7ii7 :o is 9 ! trade or bus9ess ( r5t+ or leas+ s+le-family resid5ces4 7,b7 ,acquisition indebt$ness ,! t]m acquisition indebt$ness has ! mean+ giv5 su* t]m "u subsection 7h77#c77;,b71 det]m9$-- 7i7 by sub/itut+ s+le-family resid5ce 7z def9$ 9 subsection 7n77 = qualifi$ resid5ce1 & 7ii7 )\t reg>d to clause 7ii7 !re(4 7,c7 ,s+le-family resid5ce ,! t]m s+le-family resid5ce means any resid5tial prop]ty :i* consi/s ( #a-to-#d dwell+ units4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjcj4 7b7 ,depreciation 7#a7 ,9 g5]al ,section #afg ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7i7 z subsection 7j7 & by ins]t+ aft] subsection 7h7 ! foll[+ new subsection3 7i7 ,d$uction disall[$ = s+le-,family resid5ces ( c]ta9 taxpay]s 7#a7 ,9 g5]al ,9 ! case ( a h$ge fund taxpay]1 no d$uction %all be all[$ "u ?is section = any s+le-family resid5ce4 7#b7 ,def9itions ,= purposes ( ?is subsection-- 7,a7 ,h$ge fund taxpay] ,! t]m h$ge fund taxpay] means1 = any taxable ye>1 any taxpay]-- 7i7 :o is describ$ 9 section #ejjj;,e7c71 & 7ii7 :o is 9 ! trade or bus9ess ( r5t+ or leas+ s+le-family resid5ces4 7,b7 ,s+le-family resid5ce ,! t]m s+le-family resid5ce means any resid5tial prop]ty :i* consi/s ( #a-to-#d dwell+ units4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjcj4 7c7 ,qualifi$ bus9ess income 7#a7 ,9 g5]al ,section #aii;,a7d77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( subp>agraph 7,a71 by /rik+ ! p]iod at ! end ( subp>agraph 7,b7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new subp>agraph3 7,c7 any trade or bus9ess ( h$ge fund taxpay] 7z def9$ 9 section #afc7n77#b77;,a774 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjce4