What does Preamble of Generating Retirement Ownership through Long-Term Holding do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies.

What does SHORT TITLE. of Generating Retirement Ownership through Long-Term Holding do?

This Act is formally titled the ``Generating Retirement Ownership through Long-Term Holding''.

What does DEFERRAL OF REINVESTED CAPITAL GAIN DIVIDENDS OF REGULATED of Generating Retirement Ownership through Long-Term Holding do?

This section amends the Internal Revenue Code of 1986 to create a new section, 1046, regarding reinvested capital gain dividends of regulated investment companies. It generally allows individuals to defer recognition of capital gain on reinvested capital gain dividends received from regulated investment companies. The deferred gain will be recognized upon a subsequent sale or redemption of stock in the distributing company or upon the death of the individual. The holding period for shares acquired through reinvestment is treated as one year and a day from the acquisition date. The section does not apply to individuals for whom a deduction under section 151 is allowable to another taxpayer or to estates or trusts. Section 852 is amended to refer to section 1046 for rules regarding nonrecognition of gain with respect to reinvested capital gain dividends. The amendments apply to taxable years ending after the date of enactment of this Act.

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Generating Retirement Ownership through Long-Term Holding

Last updated: 5/21/2025 · Introduced: 5/21/2025

Author: John Cornyn (R-TX)

TL;DR (AI)

This bill allows individuals to defer paying capital gains taxes on reinvested dividends received from regulated investment companies.
Deferred capital gains will be recognized when the stock is sold or redeemed, or upon the individual's death.
The bill applies to taxable years ending after its enactment and does not apply to individuals claiming deductions for another taxpayer or to estates or trusts.

119th Congressin committeeHR. 2089(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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