Newer stock is split off with a three year holding test
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70431, Sec. 70431.
Written by .
Newer stock is split off with a three year holding test
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70431 in the PDF
What the document says
“except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and”
The section rewrites section 1202(a)(1) of the Internal Revenue Code of 1986 so that for a taxpayer other than a corporation gross income leaves out 50 percent of gain on qualified small business stock acquired on or before the applicable date and held more than five years, and the applicable percentage of gain on stock acquired after the applicable date and held at least three years.
What the document actually says
“except as provided in paragraphs (3) and (4), 50 percent of any gain from the sale or exchange of qualified small business stock acquired on or before the applicable date and held for more than 5 years, and”
That sentence, in plain words
Half the gain on older stock is left out of income. That stock must have been held more than five years.
What this is about
Newer stock is treated under a second rule. It needs only three years of holding. Its share is set by a table.
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. 70431, 139 Stat. 240 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“Newer stock is split off with a three year holding test,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70431, Sec. 70431. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70431-exclusion/ (retrieved October 10, 2026).
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