Bill > S1839

This bill, called the Generating Retirement Ownership through Long-Term Holding Act, aims to modify the Internal Revenue Code to allow individual investors to defer paying taxes on capital gain dividends from regulated investment companies (RICs) when those dividends are automatically reinvested in additional shares of the same company. Under the proposed legislation, investors would not have to recognize the capital gain as taxable income at the time of reinvestment. Instead, they would only pay taxes on these gains when they sell or redeem the shares, or upon the death of the investor. The bill includes special provisions that treat reinvested shares as having been held for at least one year and a day to provide a tax benefit. The legislation does not apply to dependents or estates and trusts, and the Secretary of the Treasury is tasked with creating regulations to implement these changes. The bill's effective date would be for taxable years ending after the date of enactment, potentially providing tax advantages for individual investors who reinvest capital gain dividends from RICs.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1839/all-info