New Legislation Could Offer Tax Relief to Renters

• April 1, 2016

by Nena Perry-Brown

In February, Representative Alan Grayson (D-FL) proposed a bill which would provide renters with a similar type of tax relief as what is currently offered to homeowners. The “Renters Fairness and Equality Act” would allow renters to make tax deductions based on the rent that they paid over that taxable year, starting with 2015.

While homeowners have long benefitted from tax breaks related to mortgage interest and property taxes, renters have seen no such assistance. Passage of the bill has the potential to ease the disproportionate burden of housing costs many renters face, especially in areas like DC where the stock of affordable housing falls far short of demand.

There are some stipulations to the proposed deductions. For example, if the residence in question was appraised at $1 million for the taxable year, or $500,000 for a married individual filing separately, that would prevent the renter from being able to make a rent deduction when filing taxes.

The bill has been assigned to the House Ways and Means Committee, where it will come to a vote before potentially being presented to the entire House of Representatives for passage. UrbanTurf looks forward to following the progress of the bill.

This article originally published at http://dc.urbanturf.com/articles/blog/bill_in_house_of_representatives_committee_could_offer_tax_relief_to_renter/11057