Deferring Capital Gains Tax on Reinvested Mutual Fund Dividends
This bill allows individuals to postpone paying tax on capital gains from mutual funds if those gains are automatically reinvested into more shares of the same fund. The tax becomes due only when the shares are sold or upon the investor's death. This aims to encourage long-term retirement savings.
Key points
You can defer tax on capital gains from mutual funds if you reinvest them into the same funds.
The tax will only be paid when you sell the shares or upon your death.
This change does not apply to individuals claimed as dependents by another taxpayer, nor to estates or trusts.
Status:
Introduced
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