Stop Predatory Investing Act

Large landlords lose rental deductions

This bill would stop many tax breaks for people or entities that own 50 or more single‑family rental properties. You would not be able to take depreciation or deduct interest on any such property you own. A "single family" rental means buildings with four or fewer units (townhouses counted separately). Some sales are excepted, for example sales to an individual for use as their main home or to qualified nonprofits like community land trusts or land banks. The bill would also bar capitalizing the disallowed interest to avoid the rule. Treasury would write rules to count properties, prevent avoidance, and apply aggregation rules. Depreciation rules would apply to property placed in service in taxable years beginning after enactment. The interest and capitalization rules would apply to indebtedness incurred in taxable years beginning after enactment.