Deferred gain comes into income at sale or after five years
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70421, Sec. 70421.
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Deferred gain comes into income at sale or after five years
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70421 in the PDF
What the document says
“Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of--”
The section rewrites section 1400Z-2(b) of the Internal Revenue Code of 1986 so that deferred gain is counted in the taxable year that includes the earlier of the date the investment is sold or exchanged and the date five years after the investment was made. The amount counted is the lesser of the gain deferred and the fair market value of the investment on that date, minus the taxpayer's basis, which is zero except as the section provides. It also removes the sunset on the deferral election.
What the document actually says
“Gain to which subsection (a)(1)(B) applies shall be included in gross income in the taxable year which includes the earlier of--”
That sentence, in plain words
The gain must be counted in one tax year. That is the year holding the earlier of the two dates below.
What this is about
One date is when the investment is sold. The other is five years after it was made. Whichever comes first is used.
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
“Deferred gain comes into income at sale or after five years,” 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-deferral/ (retrieved October 10, 2026).
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