Taxation of unrealized gains is at the core of a case that the U.S. Supreme Court on Monday agreed to take up and that could change the way wealth is taxed in the U.S. The plaintiffs in Moore v. United States argue that a mandatory repatriation tax, introduced by the 2017 Tax Cuts and Jobs Act (TCJA), is unconstitutional.
- The one-time tax is levied on U.S. taxpayers with a specified amount of ownership in certain foreign corporations.
- The Moores didn’t receive dividends or “income” from their ownership stake in a foreign company, so they assert that only realized income can be taxed under the 16th Amendment to the U.S. Constitution.
