Higher Taxes on Gains from Investments in Adversary Countries
This act changes how gains from investments in companies or properties from countries of concern, like China, Russia, or Iran, are taxed. These gains will be treated as ordinary income, leading to higher taxes for citizens. The goal is to discourage investments in these regions.
Key points
Gains from selling stocks, bonds, or other property from China, Russia, Belarus, Iran, and North Korea will be taxed higher, as ordinary income, not capital gains.
Dividends from companies linked to these countries will also be treated as ordinary income, increasing tax burdens.
When inheriting assets from these countries, there will be no step-up in basis for tax purposes, potentially leading to higher taxes for heirs.
The Securities and Exchange Commission (SEC) will publish a public list of affected securities and require sellers to notify buyers about the higher tax treatment of gains.
Expired
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