Affordable Housing Incentives Act

Defer capital gains for housing sales

If enacted, you would be able to defer capital gains tax when you sell real property to a "qualified housing operator." Qualified buyers would include state, tribal, or local governments and agencies, tribally designated housing entities, community housing development organizations, and nonprofits that build or run affordable housing. The property must be under a binding 30-year affordability covenant on the sale date to keep it as qualifying rental housing or a McKinney-Vento eligible shelter. You would have to attach a qualified appraisal to your tax return and the sale price could not exceed that appraisal. You would need to notify the Secretary within 90 days, and the Secretary would audit compliance at least every five years during the 30-year period. These rules would apply to sales and transfers after the date of enactment.