S.969 - Stop Predatory Investing Act (119th Congress)
Summary
S.969, the Stop Predatory Investing Act, aims to amend the Internal Revenue Code of 1986 by disallowing interest and depreciation deductions for taxpayers owning 50 or more single-family properties. This bill targets large-scale investors in the single-family rental market. The goal is to discourage the accumulation of numerous single-family homes by single entities.
Expected Effects
The likely effect of this bill is to make it less financially attractive for large investors to acquire and hold significant numbers of single-family homes. This could potentially reduce the demand from these investors. It may also lead to increased sales to individual homeowners and qualified non-profits.
Potential Benefits
- Increased homeownership opportunities for individuals.
- Support for affordable housing initiatives through sales to qualified non-profit organizations.
- Discouragement of large-scale investors from dominating the single-family rental market.
- Potential stabilization of housing prices by reducing investor demand.
- Promotion of community development through support for community land trusts and similar organizations.
Most Benefited Areas:
Potential Disadvantages
- Potential reduction in rental housing supply, particularly in certain markets.
- Possible negative impact on property values if large investors are forced to sell properties quickly.
- Increased complexity in tax compliance for property owners.
- Potential for unintended consequences, such as investors finding ways to circumvent the regulations.
- Possible chilling effect on investment in housing, even by smaller landlords.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution primarily concerns the power of Congress to levy taxes and regulate commerce. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises, as well as to regulate commerce among the several states. The bill falls under the purview of Congress's power to tax and regulate economic activity. The bill does not appear to infringe upon any individual liberties or rights protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).