Invest Now Act

Bill: 117-hr-601
Sponsor: full_name: Rep. Schweikert, David [R-AZ-6]
Introduced: 2021-01-28
Policy area: Taxation
Subjects: Capital gains tax

Property tax
Latest action: action_date: 2021-01-28
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-01-28
action_desc: Introduced in House
text: <p><b>Invest Now Act</b></p> <p>This bill reduces to 5% the capital gains tax rate for property purchased in 2021 and held by the taxpayer for more than five years. </p>

tv_txt: I 117th CONGRESS 1st Session H. R. 601 IN THE HOUSE OF REPRESENTATIVES January 28, 2021 Mr. Schweikert (for himself and Mr. Nunes ) 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 provide a reduced capital gains rate on certain property acquired in 2021.

1. Short title This Act may be cited as the Invest Now Act . 2. Reduced capital gains rate on certain property acquired in 2021 (a) In general Section 1(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (12) Reduced rate for certain property acquired in 2021 (A) In general So much of the adjusted net capital gain taxed at a rate of 20 percent under paragraph (1) (determined without regard to this paragraph) to the extent attributable to the sale or exchange of qualified property shall be taxed at a rate of 5 percent under such paragraph (and not 20 percent). (B) Coordination with 15 percent rate So much of the adjusted net capital gain taxed at a rate of 15 percent or 20 percent under paragraph (1) (determined without regard to this paragraph) to the extent attributable to the sale or exchange of qualified property (reduced by so much of such gain as is taxed at the rate determined under clause (i)) shall be taxed at a rate of 5 percent (and not 15 percent). (C) Qualified property For purposes of this paragraph— (i) In general The term qualified property means any property— (I) purchased (as defined in section 179(d)(2)) by the taxpayer after December 31, 2020, and before January 1, 2022, and (II) held by the taxpayer (as determined under section 1223) for a period of more than 5 years. (ii) Exception for wash sales Such term shall not include any property the basis of which is determined under section 1091(d). . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2021.