Home Mortgage Tax Simplification Act of 2004

Home Mortgage Tax Simplification Act of 2004 - Amends the Internal Revenue Code to allow a tax deduction in the current taxable year of points paid for the refinancing of a principal residence to the extent that the resulting indebtedness does not exceed the sum of: (1) the amount of debt refinanced; plus (2) the lesser of $10,000 or the points paid.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4134 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4134

 To amend the Internal Revenue Code of 1986 to simplify the deduction 
            for points paid with respect to home mortgages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 2004

 Mr. Houghton 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 simplify the deduction 
            for points paid with respect to home mortgages.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Mortgage Tax Simplification Act 
of 2004''.

SEC. 2. SIMPLIFICATION OF DEDUCTION FOR POINTS ON HOME MORTGAGE.

    (a) In General.--Subsection (g) of section 461 of the Internal 
Revenue Code of 1986 (relating to prepaid interest) is amended by 
adding at the end the following new paragraph:
            ``(3) Exception for certain refinancings.--
                    ``(A) In general.--This subsection shall not apply 
                to points paid in respect of indebtedness secured by 
                such residence resulting from the refinancing of 
                indebtedness meeting the requirements of paragraph (2) 
                or this paragraph.
                    ``(B) Limitation.--Subparagraph (A) shall apply 
                only to the extent the amount of the indebtedness 
                resulting from such refinancing does not exceed the sum 
                of--
                            ``(i) the amount of the refinanced 
                        indebtedness, plus
                            ``(ii) the lesser of $10,000 or the points 
                        paid in respect of the indebtedness resulting 
                        from the refinancing to the extent that the 
                        indebtedness resulting from the refinancing 
                        does not exceed the refinanced indebtedness.''.
    (b) Conforming Amendment.--The heading of paragraph (2) of section 
461(g) of such Code is amended by inserting ``based on business 
practice'' after ``Exception''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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