Amends the Internal Revenue Code relating to the first-time homebuyer tax credit to: (1) extend such credit to all purchasers of a principal residence; (2) limit the credit to one sale or exchange of a principal residence; and (3) extend such credit through November 30, 2010.
Allows individual taxpayers a tax deduction through 2010 for losses from the sale or exchange of a principal residence.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3640 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3640
To amend the Internal Revenue Code of 1986 to extend and expand the
first-time homebuyers credit and to provide a loss deduction on the
sale of a principal residence.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 24, 2009
Mr. Childers (for himself and Mr. Kratovil) 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 extend and expand the
first-time homebuyers credit and to provide a loss deduction on the
sale of a principal residence.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. HOMEBUYER CREDIT ALLOWED FOR ANY PURCHASE OF PRINCIPAL
RESIDENCE.
(a) In General.--Subsection (a) of section 36 of the Internal
Revenue Code of 1986 is amended by striking ``who is a first-time
homebuyer of a principal residence'' and inserting ``who purchases a
principal residence''.
(b) Application to Only 1 Sale.--Subsection (b) of section 36 of
such Code is amended by adding at the end the following new paragraph:
``(3) Application to only 1 sale.--
``(A) In general.--Subsection (a) shall not apply
to more than 1 sale or exchange of a principal
residence by the individual.
``(B) Special rule for joint returns.--In the case
of a joint return with respect to the sale or exchange
of a principal residence, if a credit was allowable
under subsection (a) to a spouse for a prior sale or
exchange of a principal residence, paragraph (1) shall
be applied by reducing the $8,000 in subparagraph (A)
thereof and the $4,000 in subparagraph (B) thereof by
the credit so allowable (one-half of such credit in the
case of a joint return).''.
(c) Conforming Amendments.--
(1) Subsection (c) of section 36 of such Code is amended by
striking paragraph (1) (defining first-time homebuyer) and by
redesignating paragraphs (2), (3), (4), and (5) as paragraphs
(1), (2), (3), and (4), respectively.
(2) The heading for section 36 of such Code is amended by
striking ``First-time''.
(3) The item in the table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code relating to
section 36 is amended to read as follows:
``Sec. Homebuyer credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to residences purchased after the date of the enactment of this
Act.
SEC. 2. 1-YEAR EXTENSION OF HOMEBUYER CREDIT.
(a) In General.--Subsection (h) of section 36 of the Internal
Revenue Code is amended by striking ``December 1, 2009'' and inserting
``December 1, 2010''.
(b) Extension of Waiver of Recapture.--Subparagraph (D) of section
36(f)(4) of such Code is amended--
(1) by striking ``December 1, 2009'' and inserting
``December 1, 2010'', and
(2) in the heading by striking ``for purchases in 2009''
and inserting ``certain purchases''.
(c) Election To Treat Purchase in Prior Year.--Subsection (g) of
such Code is amended to read as follows:
``(g) Election To Treat Purchase in Prior Year.--For purposes of
this section (other than subsections (c) and (f)(4)(D)), a taxpayer may
elect to treat a purchase of a principal residence--
``(1) after December 31, 2008, and before January 1, 2010,
as made on December 31, 2008, and
``(2) after December 31, 2009, and before December 1, 2010,
as made on December 31, 2009.''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 3. DEDUCTION FOR LOSS FROM SALE OF PRINCIPAL RESIDENCE.
(a) In General.--Part VII of subchapter B of chapter I of the
Internal Revenue Code of 1986 (relating to additional itemized
deductions for individuals) is amended by redesignating section 224 as
section 225 and by inserting after section 223 the following new
section:
``SEC. 224. LOSS FROM SALE OF PRINCIPAL RESIDENCE.
``(a) Allowance of Deduction.--In the case of an individual, there
shall be allowed as a deduction for the taxable year any loss
recognized on the sale or exchange of property during the taxable year
if, during the 5-year period ending on the date of the sale or
exchange, such property has been owned and used by the taxpayer as the
taxpayer's principal residence for periods aggregating 2 years or more.
``(b) Limitations.--
``(1) Aggregate limitation.--The aggregate amount allowed
as a deduction under subsection (a) for all taxable years shall
not exceed $6,000 ($12,000 in the case of a joint return).
``(2) Annual limitation.--
``(A) In general.--The amount allowed to a taxpayer
as a deduction under subsection (a) for a taxable year
shall not exceed $2,000 ($4,000 in the case of a joint
return).
``(B) Carryforward.--If the deduction allowable
under subsection (a) for any taxable year exceeds the
limitation imposed by subparagraph (A) for the taxable
year, the excess shall be carried to each of the 2
succeeding taxable years and added to the deduction
allowable under subsection (a) for such succeeding
year.
``(3) Exclusion of loss allocated to nonqualified use.--
``(A) In general.--Subsection (a) shall not apply
to so much of the loss from the sale or exchange of
property as is allocated to periods of nonqualified
use.
``(B) Allocation.--For purposes of subparagraph
(A), loss shall be allocated to periods of nonqualified
use based on the ratio which--
``(i) the aggregate periods of nonqualified
use during the period such property was owned
by the taxpayer, bears to
``(ii) the period such property was owned
by the taxpayer.
``(C) Period of nonqualified use; coordination with
recognition of gain attributable to depreciation.--For
purposes of this paragraph, rules similar to the rules
of subparagraphs (C) and (D) of section 121(b)(5) shall
apply.
``(4) Application to only 1 sale.--
``(A) In general.--Subsection (a) shall not apply
to more than 1 sale or exchange of a principal
residence by the taxpayer.
``(B) Special rule for joint returns.--In the case
of a joint return with respect to the sale or exchange
of a principal residence, if a deduction was allowable
under subsection (a) to a spouse for a prior sale or
exchange of a principal residence, paragraphs (1) and
(2)(A) shall be applied by reducing the dollar amounts
therein by the deduction so allowable (one-half of such
deduction in the case of a joint return).
``(c) Applicable Rules.--For purposes of this section, rules
similar to the rules of subsection (d) of section 121 shall apply,
except that paragraph (6) thereof shall be applied by substituting
`loss' for `gain'.
``(d) Election To Have Section Not Apply.--This section shall not
apply to any sale or exchange with respect to which the taxpayer elects
not to have this section apply.
``(e) Termination.--The section shall not apply to the sale or
exchange of a principal residence after December 31, 2010.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting
before the last sentence the following new paragraph:
``(22) Loss from sale of principal residence.--The
deduction allowed by section 224.''.
(c) Clerical Amendments.--The table of sections for part VII of
subchapter B of chapter 1 of such Code is amended by striking the item
relating to section 224 and inserting the following:
``Sec. 224. Loss from sale of principal residence.
``Sec. 225. Cross reference.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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