Tax Changes: Gains from Investments in Risk Countries as Ordinary Income
New legislation alters how gains from investments in companies or properties from designated countries of concern, like China, Russia, or Iran, are taxed. Instead of lower capital gains rates, these will be treated as ordinary income, potentially leading to higher taxes. Additionally, upon the owner's death, the value of these assets will not automatically be stepped up to market value for tax purposes.
Key points
Higher taxes on gains from selling stocks, bonds, or real estate linked to China, Russia, Belarus, Iran, and North Korea.
No tax basis step-up at death for these specific assets, potentially increasing inheritance tax burdens.
Sellers of such assets must notify buyers about the changed tax treatment.
The Securities and Exchange Commission (SEC) will publish a list of securities and companies affected by these new rules.
Introduced
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