Home Equity Conversions Act of 1983

Home Equity Conversions Act of 1983 - Amends the Internal Revenue Code to permit the owner of a residence who has attained the age of 55 to enter into a sale-leaseback transaction with a prospective purchaser of the residence and retain occupancy rights to the residence under a lease requiring a fair rental. Allows the purchaser of such residence an income tax deduction for depreciation of the residence.

Permits an owner of a residence who sells such residence under a sale-leaseback arrangement to claim the one-time exclusion from income of gain from the sale of a principal residence by an individual age 55 or older. Excludes from the gross income of such owner the value of any occupancy rights or fair market price discount attributable to retained occupancy rights received in a sale-leaseback transaction.

Permits the use of the installment sales method of accounting in reporting gain from the sale of a residence under a sale-leaseback agreement. Provides a special rule for the treatment of an annuity purchased for the owner-occupant under a sale-leaseback transaction.

Establishes a legal presumption that a sale-leaseback transaction for the sale of a residence under this Act is an activity engaged in for profit for purposes of the deductibility of certain related business expenses. Exempts the purchaser of a residence under a sale-leaseback agreement from rules disallowing income tax deductions for personal use of a residence.