Bill > HR2927

This bill, the Racehorse Tax Parity Act, amends the Internal Revenue Code of 1986 to reduce the holding period used to determine whether horses are considered Section 1231 assets from the current period to 12 months. This change would allow owners of racehorses to qualify for more favorable capital gains tax treatment on the sale of their horses after holding them for at least 12 months, as opposed to the longer holding period that currently applies. The amendments made by this bill would be effective for taxable years beginning after December 31, 2022.