Excise tax on acquisition of single-family residences by hedge fund taxpayers

(a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 50B Single-family residences Sec. 5000E. Newly acquired single-family residences. 5000E. Newly acquired single-family residences (a) In general There is hereby imposed the acquisition of any newly acquired single-family residence by a hedge fund taxpayer an amount equal to 15 percent of the purchase price thereof. (b) Newly acquired single-Family residence For purposes of this section— (1) In general The term newly acquired single-family residence means any residential property which— (A) consists of 1-to-4 dwelling units, and (B) was acquired by the taxpayer in any taxable year which begins after the date of the enactment of this chapter. (2) Exception A residential property shall not be treated as a newly acquired single-family residence if, immediately after acquisition and at all times thereafter, such property is— (A) not rented or leased, and (B) used as the principal residence (within the meaning of section 121) of any person who has an ownership interest in the hedge fund taxpayer acquiring such taxpayer. (c) Hedge fund taxpayer For purposes of this chapter— (1) In general The term hedge fund taxpayer means, with respect to any taxable year, any applicable entity which— (A) manages funds pooled from investors, (B) has $50,000,000 or more in net value or assets under management on any day during the taxable year, and (C) is a fiduciary with respect to such investors. (2) Applicable entity (A) In general The term applicable entity means— (i) any partnership, (ii) any corporation, or (iii) any real estate investment trust. (B) Exceptions The term applicable entity shall not include— (i) an organization which is described in section 501(c)(3) and exempt from tax under section 501(a), or (ii) an organization which is primarily engaged in the construction or rehabilitation of single-family residences and which offers such residences for sale in the ordinary course of business. (3) Aggregation rules (A) In general All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single person. (B) Modifications For purposes of this subsection— (i) section 52(a) shall be applied by substituting component members for members, and (ii) for purposes of applying section 52(b), the term trade or business shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase To the extent provided in regulations in such paragraph (6)). (C) Component member For purposes of this paragraph, the term component member has the meaning given such term by section 1563(b), except that the determination shall be made without regard to section 1563(b)(2). (d) Other definitions and rules For purposes of this section— (1) Purchase price The term purchase price means the adjusted basis of the newly acquired single-family residence on the date such residence is purchased. (2) Acquisition A hedge fund taxpayer shall be treated as acquiring a single-family residence if the taxpayer acquires a majority ownership interest in the single-family residence, regardless of the percentage of that ownership interest.. (b) Clerical amendment The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Chapter 50B—Excess single-family residences. (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.