This bill changes how the federal government taxes investment profits from companies and property linked to countries deemed hostile to the United States. Specifically, any gains from selling stocks, bonds, or other investments in companies incorporated in, controlled by, or primarily operating in China, Russia, Belarus, Iran, or North Korea would be taxed as ordinary income rather than capital gains—meaning investors would pay higher tax rates on these profits. The legislation also eliminates the typical inheritance tax break that allows heirs to inherit assets without owing taxes on accumulated gains. The Securities and Exchange Commission and Treasury Department would have 180 days after passage to create rules identifying which securities qualify as "country of concern property" and to publish a public list of affected investments, while sellers would be required to notify buyers that gains are taxed differently. The new tax treatment takes effect on January 1, 2026.
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