Bill Details
HR.1112 - 119th Congress
Status
Latest action
2025-02-07 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-02-07
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
8
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0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change a tax rule for horses. Under current law, a horse must be held for a longer period before it gets a certain kind of business tax treatment. This bill would remove horses from that special rule, which would effectively reduce the required holding period to 12 months. In plain terms, it would make it easier for horse owners and businesses to treat horses under the same tax timing rules used for other assets after one year of ownership.
- It amends the Internal Revenue Code so horses are no longer listed under the current holding-period rule for section 1231 assets.
- The change would apply to tax years beginning after December 31, 2024.
- The bill is meant to update how horses are treated for tax purposes and make the rules more favorable for owners who hold horses for at least 12 months.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1112 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1112
To amend the Internal Revenue Code of 1986 to reduce the holding period
used to determine whether horses are section 1231 assets to 12 months.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2025
Mr. Barr (for himself and Mr. McGarvey) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to reduce the holding period
used to determine whether horses are section 1231 assets to 12 months.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Racehorse Tax Parity Act''.
SEC. 2. REDUCTION OF HOLDING PERIOD TO 12 MONTHS FOR PURPOSES OF
DETERMINING WHETHER HORSES ARE SECTION 1231 ASSETS.
(a) In General.--Subparagraph (A) of section 1231(b)(3) of the
Internal Revenue Code of 1986 is amended by striking ``and horses''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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