[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4062 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4062
To amend the Internal Revenue Code of 1986 to extend the income
exclusion for discharge of qualified principal residence indebtedness,
to provide exclusions from income for certain payments under the
National Mortgage Settlement, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
February 14, 2014
Mr. McDermott introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to extend the income
exclusion for discharge of qualified principal residence indebtedness,
to provide exclusions from income for certain payments under the
National Mortgage Settlement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeowner Tax Fairness Act''.
SEC. 2. EXTENSION OF INCOME EXCLUSION FOR DISCHARGE OF QUALIFIED
PRINCIPAL RESIDENCE INDEBTEDNESS.
(a) In General.--Subparagraph (E) of section 108(a)(1) of the
Internal Revenue Code of 1986 is amended by striking ``January 1,
2014'' and inserting ``January 1, 2017''.
(b) Application to Certain Agreements.--Subparagraph (E) of section
108(a)(1) of such Code, as amended by subsection (a), is amended by
inserting before the period the following: ``, or which is discharged
after such date pursuant to an agreement entered into before such date
under the programs created pursuant to, or using funds authorized by
the Emergency Economic Stabilization Act of 2008''.
(c) Effective Date.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to discharges in taxable years beginning after
December 31, 2013.
(2) Subsection (b).--The amendment made by subsection (b)
shall take effect on the date of the enactment of this Act.
SEC. 3. EXTENSION OF DEDUCTION FOR MORTGAGE INSURANCE PREMIUMS.
(a) In General.--Subclause (I) of section 163(h)(3)(E)(iv) of the
Internal Revenue Code of 1986 is amended by striking ``December 31,
2013'' and inserting ``December 31, 2015''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or accrued after December 31, 2013.
SEC. 4. EXCLUSIONS RELATING TO NATIONAL MORTGAGE SETTLEMENT PAYMENTS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by inserting before section 140 the
following new section:
``SEC. 139F. NATIONAL MORTGAGE SETTLEMENT.
``(a) General Rule.--In the case of an individual, gross income
shall not include any National Mortgage Settlement amount.
``(b) National Mortgage Settlement Amount Defined.--For purposes of
subsection (a), the term `National Mortgage Settlement amount' means,
with respect to any amount received under the National Mortgage
Settlement, an amount which is--
``(1) a payment for transitional assistance,
``(2) a payment from the Borrower Payment Fund under the
National Mortgage Settlement to a borrower whose qualified
principal residence was sold or taken in foreclosure after
December 31, 2007, and before January 1, 2014, or
``(3) a payment received as a result of a foreclosure or
excess charge of interest that the United States Department of
Justice has determined was not in compliance with the
Servicemembers Civil Relief Act.
``(c) Disregard of Refund of Excess Mortgage Interest and Related
Damages.--In the case of an individual, the amount of interest refunded
and damages paid under the National Mortgage Settlement for excess
charges of mortgage interest described in subsection (b)(3)--
``(1) shall be disregarded for purposes of this chapter,
and
``(2) no adjustment of the deduction allowable under
section 163(h) shall be made as a result of such refund.
``(d) National Mortgage Settlement.--For purposes of this section,
the term `National Mortgage Settlement' means any consent agreement
entered into in settlement of the action entitled `The United States of
America, et al. against Bank of America Corporation, et al.', filed in
the United States District Court for the District of Columbia on March
12, 2012 (case numbered 1:12-cv-00361-RMC).''.
(b) Clerical Amendment.--The table of sections for such part III is
amended by inserting before the item relating to section 140 the
following new item:
``Sec. 139F. National Mortgage Settlement.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid on or after February 9, 2012, in taxable years
ending after such date.
SEC. 5. DENIAL OF BUSINESS DEDUCTION FOR NATIONAL MORTGAGE SETTLEMENT
PAYMENTS.
(a) In General.--Section 162 of such Code is amended by
redesignating subsection (q) as subsection (r) and by inserting after
subsection (p) the following new subsection:
``(q) National Mortgage Settlement.--
``(1) In general.--No deduction shall be allowed under this
chapter for any National Mortgage Settlement amount that was
paid in exchange for a full release of the United States
potential civil claims under the Servicemembers Civil Relief
Act.
``(2) National mortgage settlement amount.--The term
`National Mortgage Settlement amount' has the meaning given
such term by section 139F.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid in taxable years ending after February 1, 2014.
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