HR2089119th CongressWALLET

Generating Retirement Ownership through Long-Term Holding

Sponsored By: Representative Van Duyne

Introduced

Summary

Allows nonrecognition of gain on capital gain dividends that are automatically reinvested. The bill would let individuals defer recognizing capital gain dividends from a Regulated Investment Company when those dividends are automatically reinvested under a dividend reinvestment plan.

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  • Individual investors: Individuals who automatically reinvest capital gain dividends would not recognize that gain when received. Tax would be recognized later when they sell or redeem the distributing company's shares or at death.
  • Holding period: Shares acquired by automatic reinvestment would be treated as held for one year and one day from the acquisition date. That affects whether later gains qualify as long-term.
  • Exclusions: The rule would not apply to estates or trusts and would not apply to individuals who are claimed as dependents by another taxpayer for that year.
  • Code and implementation: The bill adds a new Section 1046 to the Internal Revenue Code, makes conforming edits to Subchapter M, and allows Treasury to issue regulations to implement the rule.
  • Effective date: The change would apply to taxable years ending after the date of enactment.

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Bill Overview

Analyzed Economic Effects

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

Defer tax on reinvested fund gains

If passed, you could delay tax on capital gain dividends that are automatically reinvested through a fund’s dividend reinvestment plan. You would pay when you sell or redeem shares; the taxable amount would match the portion you sell. Any remaining deferred gain would be included on your final return for the year you die. Reinvested shares would count as held for one year and one day on the day you receive them. This would not apply to estates, trusts, or people claimed as a dependent, and would start for tax years ending after enactment.

Sponsors & CoSponsors

Sponsor

Van Duyne

TX • R

Cosponsors

  • Sewell

    AL • D

    Sponsored 3/11/2025

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 3/27/2025

  • LaHood

    IL • R

    Sponsored 4/1/2025

  • Rep. Malliotakis, Nicole [R-NY-11]

    NY • R

    Sponsored 4/17/2025

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 6/4/2025

  • Rep. Amo, Gabe [D-RI-1]

    RI • D

    Sponsored 6/4/2025

  • Kustoff

    TN • R

    Sponsored 6/4/2025

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 6/9/2025

  • Rep. Moulton, Seth [D-MA-6]

    MA • D

    Sponsored 6/24/2025

  • Keating

    MA • D

    Sponsored 6/26/2025

  • Rep. Ross, Deborah K. [D-NC-2]

    NC • D

    Sponsored 6/26/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 6/30/2025

  • Rep. Morelle, Joseph D. [D-NY-25]

    NY • D

    Sponsored 6/30/2025

  • Gonzalez, V.

    TX • D

    Sponsored 7/10/2025

  • Rep. Cleaver, Emanuel [D-MO-5]

    MO • D

    Sponsored 7/10/2025

  • Rep. McClain Delaney, April [D-MD-6]

    MD • D

    Sponsored 7/17/2025

  • Del. Plaskett, Stacey E. [D-VI-At Large]

    VI • D

    Sponsored 7/17/2025

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 7/23/2025

  • Kelly (PA)

    PA • R

    Sponsored 9/3/2025

  • Rep. Harrigan, Pat [R-NC-10]

    NC • R

    Sponsored 9/3/2025

  • Rep. Menendez, Robert [D-NJ-8]

    NJ • D

    Sponsored 9/4/2025

  • Rep. Sánchez, Linda T. [D-CA-38]

    CA • D

    Sponsored 9/4/2025

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 9/9/2025

  • Rep. Gillen, Laura [D-NY-4]

    NY • D

    Sponsored 9/10/2025

  • Rep. Magaziner, Seth [D-RI-2]

    RI • D

    Sponsored 9/10/2025

  • Rep. Schneider, Bradley Scott [D-IL-10]

    IL • D

    Sponsored 9/15/2025

  • McBride

    DE • D

    Sponsored 9/23/2025

  • Rep. Baumgartner, Michael [R-WA-5]

    WA • R

    Sponsored 10/31/2025

  • Rep. Miller, Carol D. [R-WV-1]

    WV • R

    Sponsored 10/31/2025

  • Trahan

    MA • D

    Sponsored 10/31/2025

  • DelBene

    WA • D

    Sponsored 10/31/2025

  • Rep. Boyle, Brendan F. [D-PA-2]

    PA • D

    Sponsored 11/12/2025

  • Rep. Yakym, Rudy [R-IN-2]

    IN • R

    Sponsored 11/18/2025

  • Rep. Steil, Bryan [R-WI-1]

    WI • R

    Sponsored 11/20/2025

  • Rep. Miller, Max L. [R-OH-7]

    OH • R

    Sponsored 12/2/2025

  • Ellzey

    TX • R

    Sponsored 12/2/2025

  • Rep. Dean, Madeleine [D-PA-4]

    PA • D

    Sponsored 12/2/2025

  • Rep. Carey, Mike [R-OH-15]

    OH • R

    Sponsored 12/9/2025

  • Rep. Fallon, Pat [R-TX-4]

    TX • R

    Sponsored 12/9/2025

  • Rep. Houlahan, Chrissy [D-PA-6]

    PA • D

    Sponsored 12/9/2025

  • Rep. Kim, Young [R-CA-40]

    CA • R

    Sponsored 12/9/2025

  • Rep. Johnson, Julie [D-TX-32]

    TX • D

    Sponsored 12/10/2025

  • Sessions

    TX • R

    Sponsored 12/18/2025

  • Rep. Guthrie, Brett [R-KY-2]

    KY • R

    Sponsored 1/7/2026

  • Rep. Smucker, Lloyd [R-PA-11]

    PA • R

    Sponsored 1/13/2026

  • Rutherford

    FL • R

    Sponsored 1/13/2026

  • Rep. Rulli, Michael A. [R-OH-6]

    OH • R

    Sponsored 1/14/2026

  • Rep. Graves, Sam [R-MO-6]

    MO • R

    Sponsored 1/22/2026

  • Rep. Sherman, Brad [D-CA-32]

    CA • D

    Sponsored 1/30/2026

  • Rep. Beatty, Joyce [D-OH-3]

    OH • D

    Sponsored 2/11/2026

  • Rep. Grothman, Glenn [R-WI-6]

    WI • R

    Sponsored 2/11/2026

  • Goldman (TX)

    TX • R

    Sponsored 2/23/2026

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 2/23/2026

  • Peters

    CA • D

    Sponsored 2/24/2026

  • Rep. Velázquez, Nydia M. [D-NY-7]

    NY • D

    Sponsored 2/24/2026

  • Rep. McCormick, Richard [R-GA-7]

    GA • R

    Sponsored 2/24/2026

  • Scott, David

    GA • D

    Sponsored 2/24/2026

  • Rep. Larson, John B. [D-CT-1]

    CT • D

    Sponsored 3/3/2026

  • Rep. Issa, Darrell [R-CA-48]

    CA • R

    Sponsored 3/3/2026

  • Rep. Lee, Susie [D-NV-3]

    NV • D

    Sponsored 3/4/2026

  • Evans (CO)

    CO • R

    Sponsored 3/4/2026

  • Rep. Beyer, Donald S. [D-VA-8]

    VA • D

    Sponsored 3/5/2026

  • Mrvan

    IN • D

    Sponsored 3/12/2026

  • Wittman

    VA • R

    Sponsored 3/12/2026

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 3/17/2026

  • Latta

    OH • R

    Sponsored 3/24/2026

  • Estes

    KS • R

    Sponsored 3/24/2026

  • McDowell

    NC • R

    Sponsored 3/24/2026

  • Rep. Barrett, Tom [R-MI-7]

    MI • R

    Sponsored 3/25/2026

  • Rep. Donalds, Byron [R-FL-19]

    FL • R

    Sponsored 3/25/2026

  • Balderson

    OH • R

    Sponsored 3/26/2026

  • Rep. Nunn, Zachary [R-IA-3]

    IA • R

    Sponsored 3/26/2026

  • Salazar

    FL • R

    Sponsored 4/13/2026

  • Rep. Hinson, Ashley [R-IA-2]

    IA • R

    Sponsored 4/13/2026

  • Turner (OH)

    OH • R

    Sponsored 4/13/2026

  • Rep. Williams, Roger [R-TX-25]

    TX • R

    Sponsored 4/13/2026

  • Rep. Crank, Jeff [R-CO-5]

    CO • R

    Sponsored 4/13/2026

  • Rep. Goodlander, Maggie [D-NH-2]

    NH • D

    Sponsored 4/20/2026

  • Rep. Van Orden, Derrick [R-WI-3]

    WI • R

    Sponsored 4/21/2026

  • Rep. Pettersen, Brittany [D-CO-7]

    CO • D

    Sponsored 4/23/2026

  • Rep. Strickland, Marilyn [D-WA-10]

    WA • D

    Sponsored 4/27/2026

  • Rep. McGarvey, Morgan [D-KY-3]

    KY • D

    Sponsored 4/27/2026

  • Davis (NC)

    NC • D

    Sponsored 4/27/2026

  • Rep. Horsford, Steven [D-NV-4]

    NV • D

    Sponsored 5/4/2026

  • Rep. Neguse, Joe [D-CO-2]

    CO • D

    Sponsored 5/11/2026

  • Stauber

    MN • R

    Sponsored 5/11/2026

  • Rep. Bergman, Jack [R-MI-1]

    MI • R

    Sponsored 5/13/2026

  • Moore (NC)

    NC • R

    Sponsored 5/14/2026

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 5/14/2026

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 5/14/2026

  • Rep. Wilson, Joe [R-SC-2]

    SC • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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