Allows individuals to defer recognition of reinvested capital gains distributions from regulated investment companies.

The bill amends the Internal Revenue Code to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies. This deferral applies if the capital gain dividend is automatically reinvested in additional shares of the company through a dividend reinvestment plan. The bill introduces a new section, 1046, which specifies the nonrecognition of gain for these reinvested capital gain dividends. The gain will be recognized upon the sale or redemption of the shares or upon the death of the individual.

Allows individuals to defer recognition of reinvested capital gains distributions from regulated investment companies.

The bill amends the Internal Revenue Code to allow individuals to defer recognition of reinvested capital gains distributions from regulated investment companies. This deferral applies if the capital gain dividend is automatically reinvested in additional shares of the company through a dividend reinvestment plan. The bill introduces a new section, 1046, which specifies the nonrecognition of gain for these reinvested capital gain dividends. The gain will be recognized upon the sale or redemption of the shares or upon the death of the individual.