The Racehorse Tax Parity Act would change how the federal tax code treats horses used in racing and breeding by reducing the holding period required to classify them as long-term capital assets from a longer period to 12 months. Currently, horses are treated differently than other livestock under tax law, requiring owners to hold them longer to receive favorable capital gains tax treatment when sold. This change would primarily affect horse breeders, racehorse owners, and others in the thoroughbred and racing industries by allowing them to benefit from lower long-term capital gains tax rates more quickly. The bill contains no new federal spending and would become effective for tax years beginning after December 31, 2024. The legislation was introduced in February 2025 and referred to the House Ways and Means Committee.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.