US. Senate Committee On Finance - Tax Incentives On Real Estate

Table Of Contents (57 Page Downloadable Publication)

INTRODUCTION ……………………………………………………. 1
I. TAX INCENTIVES FOR HOMEOWNERSHIP…………………………………………………… 2
A. Home Mortgage Interest Deduction ………………………….. 2
B. Deduction for Real Property Taxes………………………….     5
C. Exclusion of Gain from Sale of a Principal Residence ……… 7
D. Tax Exempt Bonds for Owner-Occupied Housing……………………………………………………………….. 8
E. Other Incentives………………………………………………… 12
1. Qualified first-time homebuyer distribution from an individual retirement plan…………………………………………………….. 12
2. Employer-sponsored retirement plan loans ……………….. 13
3. Exclusion from income of certain housing allowances and related deductions ………………………………………………………….. 15
4. Exclusion from gross income of discharge of qualified principal residence indebtedness……………………………………………..17
5. Treatment of tenant-stockholders of cooperative housing corporations…………………………………………………………. 19
II. TAX INCENTIVES FOR RENTAL HOUSING ………………….. 21
A. Low-Income Housing Tax Credit……………………………….21
B. Rehabilitation Tax Credit………………………………………..25
C. Tax-Exempt Bond Financing Residential Rental Property….27
D. Accelerated Depreciation for Residential Rental Property…28
E. Passive Activity Loss Rules and Special Rental Real Estate Rules…………………………………………………………………. 35
III. DATA AND ANALYSIS RELATED TO TAX INCENTIVES FOR
HOMEOWNERSHIP ……………………………………………….. 37
IV. DATA AND ANALYSIS RELATED TO TAX INCENTIVES FOR RENTAL
HOUSING……………………………………………………………. 47

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