New Federal Measure Would Offer Tax Deductions to Millions of Homeowners
U.S. Representatives Anna G. Eshoo (D-CA) and Mike Thompson (D-CA) have introduced a measure that would allow homeowners in community associations who earn $115,000 or less in annual income to deduct up to $5,000 of their community association fees and assessments from their federal tax liability.
Expressing support for the bill, Community Associations Institute (CAI) says the legislation will benefit many of the more than 66 million Americans who live in homeowners associations, condominium communities, cooperatives and other planned communities.
The bill—Helping our Middle-Income Earners (HOME) Act—”recognizes that millions of middle class homeowners are struggling to keep up with rising household expenses like child care, college tuition, health care, mortgage and community assessments,” Eshoo says. “The Home Act can go a long way by providing relief from this tax burden on millions of middle class families.”
This bill recognizes the financial unfairness facing homeowners in community associations, as they pay their fair share of local property taxes along with their community assessments, and receive many municipal services from their community association, such as street and sidewalk cleaning, trash removal, snow removal and other services.
“CAI applauds Rep. Eshoo and Rep. Thompson for their efforts to make homeownership more affordable and for recognizing the inequity of double-taxation faced by homeowners in America’s community associations,” says CAI Chief Executive Officer Thomas M. Skiba, CAE.
“We look forward to working with Eshoo and Thompson to ensure this legislation is a net gain for millions of Americans who live in community associations,” Skiba adds.
While there hasn’t been a Senate companion bill introduced, CAI expects members of the House of Representatives in states with a large number of community associations—such as Florida, California, Texas, Illinois, North Carolina, New York and Massachusetts—to support the legislation and continue a dialogue that leads to inclusion of the tax deduction in comprehensive tax reform legislation.
For more information, visit www.caionline.org. Reprinted with permission from RISMedia. ©2016. All rights reserved.
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