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Stop Predatory Investing Act
3/29/2025, 2:23 AM
Summary of Bill S 969
If this bill were to become law, it would mean that individuals or companies who own a large number of single family properties would no longer be able to reduce their taxable income by deducting the interest they pay on mortgages or loans for those properties, as well as the depreciation of the properties over time.
The rationale behind this proposed change is to level the playing field in the real estate market and prevent large property owners from receiving what some may see as unfair tax advantages. By disallowing these deductions for those who own 50 or more single family properties, the government hopes to create a more equitable tax system for all taxpayers. It is important to note that this bill is still in the early stages of the legislative process and has not yet been passed into law. It will need to go through several steps in Congress before it can be enacted, including committee review, debate, and a vote in both the House of Representatives and the Senate. Overall, Bill 119 s 969 represents an effort to reform the tax code in a way that could impact large property owners, particularly those who own a significant number of single family properties. If passed, this legislation would have significant implications for how these taxpayers are able to deduct expenses related to their real estate investments.
Congressional Summary of S 969
Stop Predatory Investing Act
This bill prohibits a taxpayer who owns (directly or indirectly) 50 or more single-family residential rental properties (disqualified single-family property owner) from claiming a federal tax deduction for interest paid (or accrued) in connection with such properties or a federal tax deduction for depreciation in connection with such properties.
The bill generally defines a single-family residential rental property as any residential rental property containing four or fewer dwelling units and improvements to real property related to such dwelling units.
However, under the bill, a disqualified single-family property owner may still claim a tax deduction for interest and depreciation on (1) single-family residential rental property for which the low-income housing tax credit (LIHTC) may be claimed and (2) certain newly constructed single-family residential rental properties. (The LIHTC program awards tax credits for newly-constructed or substantially rehabilitated low-income housing.)
The bill also allows a disqualified single-family property owner to claim a federal tax deduction for interest or depreciation in connection with a single-family residential rental property in the year such property is sold if it is sold to
- an individual for use as a principal residence;
- a non-profit organization that creates, develops, or preserves affordable housing;
- certain community development organizations;
- a land bank;
- any resident-owned cooperative or community land trust; or
- a public housing agency subsidiary.
