Basis rises 10 percent after five years, or 30 percent for a rural fund
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70421, Sec. 70421.
Written by .
Basis rises 10 percent after five years, or 30 percent for a rural fund
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70421 in the PDF
What the document says
“the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A).”
The section raises the basis of an investment held at least five years by 10 percent of the gain deferred, or 30 percent where the investment is in a qualified rural opportunity fund, and treats that increase as occurring before the five year inclusion date.
What the document actually says
“the basis of such investment shall be increased by an amount equal to 10 percent (30 percent in the case of any investment in a qualified rural opportunity fund) of the amount of gain deferred by reason of subsection (a)(1)(A).”
That sentence, in plain words
The value on the books rises after five years. The rise is 10 percent of the gain put off. For a rural fund it is 30 percent.
What this is about
A higher basis means less gain to tax. The rural rate is three times the normal one. The rise counts before the gain is brought in.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70421, 139 Stat. 223 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“Basis rises 10 percent after five years, or 30 percent for a rural fund,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70421, Sec. 70421. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70421-basis-increase/ (retrieved October 10, 2026).
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