Bill > S2047

This bill aims to change how capital gains are taxed for investments connected to certain countries considered adversarial to the United States, specifically China, Russia, Belarus, Iran, and North Korea (referred to as "countries of concern"). Under the proposed legislation, any gains from selling securities or property associated with these countries would be taxed as ordinary income rather than at the typically lower capital gains tax rates. The bill defines "specified country of concern property" broadly, including securities of companies incorporated in or with significant assets/employees in these countries, or companies controlled by entities from these nations. Additionally, the bill would prevent a step-up in basis at death for such properties, meaning inherited assets from these countries would not receive the typical tax benefit of being valued at their worth at the time of the original owner's death. The Securities and Exchange Commission would be required to publish a list of affected securities and establish rules for notifying buyers about the different tax treatment. These changes would take effect on January 1, 2026, giving investors and companies time to adjust their investment strategies in response to the new tax provisions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2047/all-info