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119-s-2047119th CongressWALLET

No Capital Gains Allowance for American Adversaries Act

Sponsored By: Senator Ricketts, Pete [R-NE]

Introduced

Summary

Reclassifies gains from certain foreign assets as ordinary income. This bill would treat sales, exchanges, and dividends tied to companies or property in China, Russia, Belarus, Iran, and North Korea as ordinary income instead of capital gains.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Higher taxes on certain foreign investments

This bill would tax gains from selling certain foreign-linked property as ordinary income instead of capital gains. It would also treat dividends from covered foreign corporations as ordinary income and deny a step-up in basis at death for those assets. "Countries of concern" listed are China (including Hong Kong and Macao, excluding Taiwan), Russia, Belarus, Iran, and North Korea. These rules would apply to dispositions and dividends on or after January 1, 2026.

SEC list and seller notice rules

If enacted, the SEC would publish a public list of securities that meet the bill's covered definition. The SEC and Treasury would issue implementing rules within 180 days after enactment. Persons selling covered securities would have to notify the counterparty that gains on those securities are treated as ordinary income, not capital gains. The SEC could also require reports to identify covered securities.

Sponsors & CoSponsors

Sponsor

Ricketts, Pete [R-NE]

NE • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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