H.R. 1112 — Racehorse Tax Parity Act

This section establishes the short title of the Act as the “Racehorse Tax Parity Act.”

This section revises the definition of section 1231 assets under the Internal Revenue Code of 1986 by removing horses from the 24-month holding-period rule, so that horses are treated under the general 12-month holding period applicable to other section 1231 property. (Thus, horses held for more than 12 months, rather than more than 24 months, may qualify for capital gain treatment under section 1231.) The change applies to taxable years beginning after December 31, 2024.