ROBINHOOD Act of 2026

The ROBINHOOD Act of 2026 introduces a new tax rule that treats high-income individuals and wealthy entities as if they sold their assets when they take out new loans. Specifically, the bill requires these taxpayers to recognize capital gains on their long-term assets equal to the amount of any new loan they receive, effectively taxing the borrowing event itself. This provision applies to individuals with an annual income exceeding $100 million or assets valued over $1 billion, as well as certain trusts and estates meeting similar thresholds. The law also mandates that these recognized gains cannot be offset by capital losses in the same year and extends the rule to long-term leases for properties held for more than five years. Additionally, the bill includes specific definitions for "covered assets," valuation methods, and reporting requirements to ensure compliance with these new tax obligations.