< Back to H.R. 4134 (108th Congress, 2003–2004)

Text of the Home Mortgage Tax Simplification Act of 2004

This bill was introduced on April 2, 2004, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 2, 2004 (Introduced).

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Source: GPO

I

108th CONGRESS

2d Session

H. R. 4134

IN THE HOUSE OF REPRESENTATIVES

April 2, 2004

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.

1.

Short title

This Act may be cited as the .

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.