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119-hr-1112119th CongressWALLET
Racehorse Tax Parity Act
Sponsored By: Representative Barr, Andy [R-KY-6]
Introduced
Summary
This bill would set a 12-month holding period for horses to qualify as Section 1231 assets. It amends Internal Revenue Code section 1231(b)(3) by removing the phrase "and horses" and would apply to taxable years beginning after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Shorter tax holding period for horse sales
If enacted, this would cut the holding period for horses from 24 months to 12 months to get special business-asset tax treatment. Owners who sell horses held more than 12 months would get section 1231 treatment, which often means lower long-term capital gains tax on net gains and ordinary loss deductions on net losses. Tax bills could go up or down depending on income, other sales, and timing. This would apply to tax years beginning after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Barr, Andy [R-KY-6]
KY • R
Cosponsors
Rep. McGarvey, Morgan [D-KY-3]
KY • D
Sponsored 2/7/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov