Equine Tax Fairness Act

Bill: 117-hr-5833
Sponsor: full_name: Rep. Barr, Andy [R-KY-6]
Introduced: 2021-11-03
Policy area: Taxation
Latest action: action_date: 2021-11-03
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-11-03
action_desc: Introduced in House
text: <p><strong>Equine Tax Fairness Act</strong></p> <p>This bill modifies the tax treatment of gains and losses from the sale of depreciable property used in a trade or business to eliminate <em>horses</em> from the definition of <em>livestock</em> (thus making the 24-month holding period requirement for livestock inapplicable to horses and allowing horses to be treated as capital assets subject to the existing 1-year holding period requirement for long-term capital gains). </p> <p>The bill also makes permanent the 3-year recovery period for the depreciation of race horses.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 5833 IN THE HOUSE OF REPRESENTATIVES November 3, 2021 Mr. Barr 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 modify certain provisions related to horses.

1. Short title This Act may be cited as the Equine Tax Fairness Act . 2. Reduction of holding period to 12 months for purposes of determining whether horses are section 1231 assets (a) In general Section 1231(b)(3)(A) 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, 2021. 3. Three-year depreciation for race horses (a) In general Section 168(e)(3)(A)(i) of the Internal Revenue Code of 1986 is amended to read as follows: (i) any race horse, . (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2021.