Racehorse Tax Parity Act

I 118TH CONGRESS 1ST SESSION H. R. 2927 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 APRIL 27, 2023 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Racehorse Tax Parity 4 Act’’. 5 VerDate Sep 11 2014 05:25 May 05, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2927.IH H2927 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2927 IH SEC. 2. REDUCTION OF HOLDING PERIOD TO 12 MONTHS 1 FOR PURPOSES OF DETERMINING WHETHER 2 HORSES ARE SECTION 1231 ASSETS. 3 (a) IN GENERAL.—Subparagraph (A) of section 4 1231(b)(3) of the Internal Revenue Code of 1986 is 5 amended by striking ‘‘and horses’’. 6 (b) EFFECTIVE DATE.—The amendment made by 7 this section shall apply to taxable years beginning after 8 December 31, 2022. 9 Æ VerDate Sep 11 2014 05:25 May 05, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H2927.IH H2927 kjohnson on DSK79L0C42PROD with BILLS