What does Preamble of ROBINHOOD Act of 2026 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to ensure that high net-worth individuals cannot avoid paying taxes on their income and assets,' aims to modify the Internal Revenue Code of 1986.

What does SHORT TITLE. of ROBINHOOD Act of 2026 do?

This bill is formally titled the ``Redistribution Of Billions by Instituting New High-income Obligations on Overlooked Debt Act of 2026''.

What does TREATMENT OF LOANS FOR HIGH NET-WORTH INDIVIDUALS. of ROBINHOOD Act of 2026 do?

This section amends the Internal Revenue Code of 1986 by adding a new part, Part VII, concerning the treatment of loans for applicable taxpayers. It establishes new sections 1299, 1299A, and 1299B to define and govern this treatment. In general, loans issued to an applicable taxpayer may result in long-term capital assets held by that taxpayer being treated as sold at fair market value. Taxpayers may adjust the basis of these assets, but this does not apply to depreciable property. Long-term capital gains from assets treated as sold cannot be reduced or offset by capital losses. The definition of 'applicable taxpayer' includes individuals meeting specific income or asset tests, as well as certain trusts and estates. The asset test involves a threshold of $1,000,000,000, and the income test is $100,000,000. Leases with terms greater than 5 years are treated similarly to loans for these purposes. The amendments apply to taxable years beginning after December 31, 2026.

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ROBINHOOD Act of 2026

Last updated: 6/2/2026 · Introduced: 6/2/2026

Author: Ruben Gallego (D-AZ)

TL;DR (AI)

The bill modifies the Internal Revenue Code to treat certain loans to high-net-worth individuals as if those individuals sold their assets, potentially triggering capital gains taxes.
Individuals with over $100 million in income or $1 billion in assets, as well as certain trusts and estates, are considered 'applicable taxpayers' subject to these new rules.
Long-term leases exceeding five years are treated similarly to loans for tax purposes under this legislation, applying to taxable years beginning after December 31, 2026.

119th Congressin committeeOfficial page

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Other Sections

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

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