It is my understanding that you will have 6 months to reinvest your profit. There will be no capital gains triggered if the profits are reinvested within 6 months. So, tax free until such time you decide to spend some of your profit, then dinged at the capital gains rate. I would also imagine there will be a hold period for qualifying investments. For example:

Hold SLI for over 1 year,then sell, no taxes paid when sold

Hold SLI for LESS than 1 year,then sell, taxes paid on capital gains.

I am saying this because of the point Kherson brought up about day traders. The government now has a job collecting taxes from traders, if they opened this door up without hold periods, every cent a day trader would make could be pushed ahead and tax deferred. He could then sell part of his original investment, which is tax free in the first place, to get his everyday money. I would imagine there will be restrictions to prevent this type of tax evasion. IMO.

If this goes through, this brings up another interesting subject with SLI. If the Tesoro gets sold, I say it will be better for all shareholders to have the Tesoro in an entity of its own. There will most likely be a spin out company formed that solely owns the Tesoro, which can be sold as a capital gain, rather than a cash DIVIDEND which would be taxable. We would then get a cash payout when the entity is sold, TAX FREE,as long as that money was reinvested within the 6 months specified. That TAX FREE money, or most of it would go back into other SLI ventures or other companies by the individual. The significance of this, is that there will be MORE money available to go back into SLI ventures whereas the TAX money everyone would have been paying will be EXTRA THAT WOULDN,T HAVE BEEN THERE IN THE OLD SCENARIO.

Like Kherson said, this could be another win win for us!