HOPE (Humans over Private Equity) for Homeownership Act

Taxation on Hedge Fund Acquisitions: A 15 percent excise tax is imposed on the purchase price when a hedge fund taxpayer acquires a newly acquired single-sfamily residence (Section 2(a)). This targets the acquisition of residential property consisting of 1-to-4 dwelling units (Section 2(b)(1)).

Corporate Surtax: For corporations described as hedge fund taxpayers, the tax percentage is increased by 5 percentage points (Section 3(a)).

Disallowance of Interest Deductions: Hedge fund taxpayers who are in the business of renting or leasing single-family residences will not be allowed a deduction for interest paid or accrued on acquisition indebtedness (Section 4(a)).

Disallowance of Depreciation: Hedge fund taxpayers engaged in the business of renting or leasing single-family residences will not be allowed a deduction for depreciation on any single-family residence (Section 4(b)).

Increased Costs for Hedge Fund Taxpayers: Hedge fund taxpayers will face a 15 percent excise tax on the purchase price of newly acquired single-family residences (Section 2(a)).

Tax Burden on Specific Entities: The bill defines hedge fund taxpayers as applicable entities, such as partnerships, corporations, or real estate investment trusts, that manage pooled funds with $50,000,000 or more in net value or assets (Section 2(c)(1)).

Loss of Business Deductions: Certain hedge fund taxpayers will lose the ability to deduct mortgage interest related to the acquisition of single-family residences (Section 4(a)).

Loss of Depreciation Deductions: Certain hedge fund taxpayers will be unable to claim deductions for depreciation on single-family residences (Section 4(b)).

Changes to Qualified Business Income: The bill amends the rules regarding qualified business income to include any trade or business of a hedge fund taxpayer (Section 4(c)).