US SB788

Imposes a 15% excise tax (minimum $10,000) on hedge fund taxpayers (entities with $50 million+ in assets under management) for each new single-family residence acquisition after enactment

Requires applicable taxpayers to divest existing single-family home portfolios over 10 years, reducing holdings by 10% annually, with a $5,000 annual penalty per excess property above permitted thresholds

Hedge fund taxpayers must reach zero single-family residences by year 10, while smaller applicable taxpayers may retain up to 50 properties permanently

Disallows mortgage interest deductions and depreciation deductions for single-family residences owned by taxpayers subject to the excise tax provisions

Exempts 501(c)(3) nonprofits, homebuilders selling in ordinary course of business, foreclosed unoccupied properties, owner-occupied residences, and low-income housing tax credit properties from the restrictions