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.
Show full summary
- 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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