No CRS summary available for this bill.
This section establishes nonrecognition of gain for individuals (excluding dependents, estates, or trusts) on capital gain dividends from regulated investment companies (RICs, i.e., mutual funds and certain exchange-traded funds) that are automatically reinvested in additional shares under a dividend reinvestment plan. Deferred gain is recognized pro rata upon a subsequent sale or redemption of RIC shares or upon the individual's death (with reinvested shares treated as held for more than one year from acquisition); conforming amendments are made to IRC §852(b)(3)(B) and the table of sections. The provision applies to taxable years ending after enactment.