Generating Retirement Ownership through Long-Term Holding

Bill 119 HR 2089, also known as the "Capital Gains Deferral Act," aims to make changes to the Internal Revenue Code of 1986. Specifically, this bill would allow individuals to defer the recognition of reinvested capital gains distributions from regulated investment companies.

Under current tax laws, individuals who receive capital gains distributions from regulated investment companies are required to pay taxes on these gains in the year they are received, even if the gains are reinvested back into the investment company. This can create a tax burden for individuals who choose to reinvest their gains rather than take them as cash.

The Capital Gains Deferral Act seeks to address this issue by allowing individuals to defer the recognition of these reinvested capital gains distributions. This means that individuals would not have to pay taxes on these gains until they are actually withdrawn from the investment company. By allowing individuals to defer the recognition of reinvested capital gains distributions, this bill aims to provide individuals with more flexibility in managing their investments and potentially reduce their tax burden. This could incentivize individuals to reinvest their gains back into the investment company, leading to potential growth in their investments over time. Overall, the Capital Gains Deferral Act seeks to provide individuals with a tax benefit when it comes to reinvesting their capital gains distributions from regulated investment companies. It will be interesting to see how this bill progresses through Congress and what impact it may have on individuals' investment strategies.