1. Short title This Act may be cited as the No Capital Gains Allowance for American Adversaries Act . 2. Certain gains and dividends derived from countries of concern treated as ordinary income (a) In general Part IV of subchapter P of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 1261. Gains derived from countries of concern treated as ordinary income (a) In general Gain from the sale, exchange, or other disposition of specified country of concern property shall be treated as ordinary income. Such gain shall be recognized notwithstanding any other provision of this title. (b) Specified country of concern property For purposes of this section: (1) In general The term specified country of concern property means— (A) any registered or unregistered security of a company or other entity, as determined by criteria established by the Securities and Exchange Commission and the Secretary of the Treasury— (i) which is incorporated or otherwise organized in a country of concern, (ii) which has a majority of such company or other entity’s assets or employees located in a country of concern, (iii) which is owned by, controlled by, or subject to the jurisdiction or direction of a government of a country of concern, (iv) where a majority of such company or other entity’s value depends on the revenues, profits, market capitalization, assets, or the value of a security (including options to purchase or sell) of companies or other entities described under clause (i), (ii), or (iii), or (v) where such company or other entity is controlled by any company or other entity described under clause (i), (ii), or (iii), and (B) any property (other than securities) which is located or used in a country of concern. (2) Additional definitions For purposes of paragraph (1): (A) Controlled by The term controlled by has the meaning given that term under section 230.405 of title 17, Code of Federal Regulations. (B) Country of concern The term country of concern means the People’s