US SB1839

Allows individuals to defer capital gains taxes on mutual fund (regulated investment company) capital gain dividends that are automatically reinvested through a dividend reinvestment plan

Deferred gains become taxable upon sale or redemption of shares, with recognition proportional to the percentage of shares sold, or upon the death of the taxpayer

Shares acquired through reinvestment automatically receive long-term capital gains treatment, with a holding period of one year and one day from the date of acquisition

Excludes dependents claimed on another taxpayer's return and estates or trusts from eligibility for the deferral

Applies to taxable years ending after the date of enactment and amends the Internal Revenue Code by adding new Section 1046