Homeowners Tax Relief Act

Homeowners Tax Relief Act - Allows a homeowner to depreciate the investment in his home in the same manner as residential property held for rental purposes is depreciated under the Internal Revenue Code. Imposes a tax deduction limitation of $1,500 annually.

Provides that, if the taxpayer elects to depreciate his home, his tax basis will be decreased accordingly.

Provides that the taxpayer who owns shares in a cooperative housing corporation will have similar depreciation tax relief as proposed for the individual home owner.

Enables the taxpayer to deduct under the Internal Revenue Code up to $1,000 for his home repairs and maintenance. Excludes from this tax deduction amounts spent for domestic servants and management of property.

Enables a taxpayer to deduct as a capital loss, his economic loss on the sale of his home to the extent it does not exceed $5,000.

Changes present law giving taxpayers 65 or older alternative choices of electing non-recognition of gain in the selling of his house pursuant to the Internal Revenue Code. Raises the non-recognition limitation for the sale of a home by persons 65 and over from $20,000 to $40,000.

Provides a taxpayer 65 years of age or older with a $1,000 tax deduction if he has a life insurance in a retirement home which represents an investment of at least $5,000.