H. R. 4134
IN THE HOUSE OF REPRESENTATIVES
April 2, 2004
Mr. Houghton introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to simplify the deduction for points paid with respect to home mortgages.
This Act may be cited as the
Simplification of deduction for points on home mortgage
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:
Exception for certain refinancings
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.
Subparagraph (A) shall apply only to the extent the amount of the indebtedness resulting from such refinancing does not exceed the sum of—
the amount of the refinanced indebtedness, plus
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.
The heading of paragraph (2) of section 461(g) of such Code is amended by inserting
based on business practice after
The amendments made by this section shall apply to taxable years beginning after December 31, 2004.