Stop Predatory Investing Act
Sponsored By: Senator Warnock, Raphael G. [D-GA]
Introduced
Summary
Blocks tax deductions for interest and depreciation for large single-family rental owners. This bill would deny ordinary interest deductions and depreciation for single-family residential rental properties owned by taxpayers who own 50 or more such properties, while carving out sales to individual homebuyers and certain affordable-housing nonprofits.
Show full summary
- Large landlords: Owners who directly or indirectly hold 50 or more single-family rental properties would not be able to claim ordinary interest deductions or depreciation for those properties. The depreciation rule allows limited relief in the taxable year of a qualifying sale.
- Individual buyers and community housing groups: Sales to an individual for use as that person’s principal residence or to qualified nonprofits would be exempt. Qualified nonprofits include community development corporations, community housing development organizations, land banks, resident-owned cooperatives, community land trusts, and subsidiaries of public housing agencies.
- Tax mechanics and enforcement: The bill would treat related entities as one taxpayer to stop fragmentation, bar treating disallowed interest as capitalized under current elections, and direct the Treasury to write regulations to prevent avoidance.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
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.
Sponsors & CoSponsors
Sponsor
Warnock, Raphael G. [D-GA]
GA • D
Cosponsors
Sen. Smith, Tina [D-MN]
MN • D
Sponsored 3/11/2025
Sen. Wyden, Ron [D-OR]
OR • D
Sponsored 3/11/2025
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 3/11/2025
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 3/11/2025
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 3/11/2025
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 3/11/2025
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 3/11/2025
Sen. Klobuchar, Amy [D-MN]
MN • D
Sponsored 3/11/2025
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 3/11/2025
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 3/11/2025
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 3/11/2025
Sen. Heinrich, Martin [D-NM]
NM • D
Sponsored 10/27/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov