Stop Predatory Investing Act

The Stop Predatory Investing Act disallows tax deductions for interest and depreciation on single-family rental properties owned by individuals or entities that own 50 or more such properties (defined as residential units with four or fewer dwellings, including townhouses as separate buildings). It applies to properties without low-income housing credits and excludes properties constructed by the owner or acquired before first occupancy. Exceptions allow deductions if the property is sold to an individual for their primary residence (per Section 121) or to a qualified nonprofit organization focused on affordable housing, such as community land trusts, housing nonprofits, or community development corporations. The law defines "disqualified" owners and specifies qualifying nonprofits under Section 163(n)(2)(C), effective for taxable years after enactment.