Prohibiting Unrealized Capital Gains Taxation Act
The source supplies the latest action, but no lifecycle stage.
Latest action (2 Nov 2021): Referred to the House Committee on Ways and Means.
What this bill does
This bill, titled the "Prohibiting Unrealized Capital Gains Taxation Act," would bar the Secretary of the Treasury or any other federal official from creating or implementing new requirements to tax unrealized capital gains—that is, increases in the value of an asset that has not yet been sold. This restriction would apply broadly to taxable assets, including tradable securities (covered and noncovered), gifts, bequests, and transfers in trust. The prohibition would not affect any reporting or taxation requirements already in effect as of October 15, 2021, under existing law or programs.
The bill would primarily affect the Treasury Department and Internal Revenue Service by limiting their authority to adopt new rules taxing asset appreciation before it is realized through sale or transfer. In practical terms, it aims to prevent any future federal policy that would tax gains in the value of investments, property, or other assets while they are still held, as opposed to taxing gains only when they are sold or otherwise disposed of. Taxpayers with significant asset holdings, particularly those with substantial unrealized gains, would be most directly affected by such a prohibition, since it would preserve the current practice of taxing gains only upon realization.
The bill was introduced on November 2, 2021, by Rep. Byron Donalds along with several cosponsors, and was referred to the House Committee on Ways and Means. It did not receive a vote and did not advance further during the 117th Congress. As an introduced bill that saw no committee action or floor vote, it did not become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Prohibiting Unrealized Capital Gains Taxation Act
This bill prohibits the Department of the Treasury or any other federal official from imposing a tax on unrealized capital gains (i.e., not sold or otherwise disposed of).
Timeline
2 Nov 2021
Referred to the House Committee on Ways and Means.
Common questions
- What does H.R. 5814 do?
- This bill, titled the "Prohibiting Unrealized Capital Gains Taxation Act," would bar the Secretary of the Treasury or any other federal official from creating or implementing new requirements to tax unrealized capital gains—that is, increases in the value of an asset that has not yet been sold. This restriction would apply broadly to taxable assets, including tradable securities (covered and noncovered), gifts, bequests, and transfers in trust. The prohibition would not affect any reporting or taxation requirements already in effect as of October 15, 2021, under existing law or programs. The bill would primarily affect the Treasury Department and Internal Revenue Service by limiting their authority to adopt new rules taxing asset appreciation before it is realized through sale or transfer. In practical terms, it aims to prevent any future federal policy that would tax gains in the value of investments, property, or other assets while they are still held, as opposed to taxing gains only when they are sold or otherwise disposed of. Taxpayers with significant asset holdings, particularly those with substantial unrealized gains, would be most directly affected by such a prohibition, since it would preserve the current practice of taxing gains only upon realization. The bill was introduced on November 2, 2021, by Rep. Byron Donalds along with several cosponsors, and was referred to the House Committee on Ways and Means. It did not receive a vote and did not advance further during the 117th Congress. As an introduced bill that saw no committee action or floor vote, it did not become law.
- Has H.R. 5814 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 5814. Check the latest action and official source below.
- Who sponsored H.R. 5814?
- H.R. 5814 was sponsored by Rep. Donalds, Byron [R-FL-19] (R-FL), with 10 cosponsors.
- What's the latest action on H.R. 5814?
- Referred to the House Committee on Ways and Means. (2 Nov 2021).
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