Federal Tax Reform Act

Federal Tax Reform Act - Allows deductions by individuals of amounts paid to any private nonprofit elementary or secondary school for education of their dependents.

Limits the amount of such deductions to 50 percent of the dependent's tuition or $750.

Allows deductions by individuals of amounts paid for higher education, not exceeding $1,500 a year.

Allows deductions up to $750 for ordinary expenses of repairs to residences.

Allows deductions for rehabilitation of rental housing with respect to amortization of the adjusted base of such housing as so rehabilitated or restored based on a period of 60 months.

Permits persons 62 or older to receive a credit up to $450 against real property taxes or the amount of rent constituting real property taxes.

States that the amount of real property taxes paid by an individual shall be reduced by the amount of any refund of such taxes.

Repeals certain foreign income exemptions and additional first-year depreciation allowances for small business.

Imposes a tax on the income of every person equal to 10 percent of the amount by which the sum of the items of tax preference exceeds $12,000.

Redefines permissible deductions for: (1) depletion and intangible drilling and development costs of oil or gas wells; (2) charitable contributions of appreciated property; and (3) credits for foreign tax credit and investment credit.

States that a bequest, legacy, devise, or transfer shall be deductible under the Federal Estate Tax only if it is to be used predominantly within the United States.