HR 2802 — First-Time Homebuyer Savings Account Act of 2017

Summary

First-Time Homebuyer Savings Account Act of 2017 This bill amends the Internal Revenue Code to provide for tax-preferred savings accounts for first-time homebuyers. An individual may make up to $14,000 per year in after-tax contributions to the account, subject to a $50,000 lifetime contribution limit, a $150,000 limit on the fair market value of the account, and adjustments for inflation after 2018. Distributions from the account that are used to pay the qualified principal residence purchase expenditures of the designated beneficiary are excluded from gross income. A "qualified principal residence purchase expenditure" is, with respect to a designated beneficiary who is a first-time homebuyer, any amount: (1) paid toward the purchase price of a principal residence of the beneficiary, (2) required to be paid to settle the purchase of such residence, or (3) required to be paid by the beneficiary to obtain acquisition indebtedness with respect to the residence. Excess contributions to the account, distributions that exceed the qualified principal residence purchase expenditures of the beneficiary, and distributions that are not used for first-time homebuyer purposes are subject to specified taxes.

Bill Text

• Introduced Introduced in House Current html June 07, 2017

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes a new tax-preferred savings account specifically for first-time homebuyers under the Internal Revenue Code.

• Subchapter F of chapter 1 of the Internal Revenue Code of 1986

  PART IX--FIRST-TIME HOMEBUYER ACCOUNTS Sec. 530A. First-time homebuyer account.

  This adds a new part to the Internal Revenue Code for first-time homebuyer accounts.

• Section 4973

  or → or

  This modifies section 4973 to include first-time homebuyer accounts in the definition of excess contributions.

• Section 4973

  In the case of a first-time homebuyer account, the term 'excess contributions' means the amount by which the amount contributed for the taxable year to such account exceeds the contribution limits under section 530A(b).

  This defines excess contributions specifically for first-time homebuyer accounts.

• Subchapter F of chapter 1 of the Internal Revenue Code of 1986

  The term 'first-time homebuyer account' means a trust created or organized in the United States exclusively for the purpose of paying the qualified principal residence purchase expenditures of an individual who is the designated beneficiary of the trust.

  This establishes the definition of a 'first-time homebuyer account'.

• Subchapter F of chapter 1 of the Internal Revenue Code of 1986

  An individual shall not be treated as a first-time homebuyer if he or she has had ownership interest in a principal residence within the previous three years.

  This sets a limitation on who qualifies as a first-time homebuyer.

• Section 530A(d)(1)(C)(iv) and (v)

  no contribution will be accepted unless it is in cash, and other conditions apply.

  This specifies requirements for contributions to first-time homebuyer accounts.

• Section 530A

  The account will be exempt from taxation under this subtitle but subject to unrelated business income tax.

  This provides a tax exemption for the first-time homebuyer account.

Action History

1. June 07, 2017

   Introduced in House

2. June 07, 2017

   Introduced in House

3. June 07, 2017

   Referred to the House Committee on Ways and Means.

Sponsors

• Mike Coffman · Primary

Subjects