Capital Loss Inflation Fairness Act

I 118TH CONGRESS 1ST SESSION H. R. 2684 To amend the Internal Revenue Code of 1986 to increase the limitation on capital losses and index the limitation to inflation. IN THE HOUSE OF REPRESENTATIVES APRIL 18, 2023 Mr. NORMAN (for himself, Mr. LALOTA, Mr. WEBER of Texas, Ms. MACE, and Mrs. MILLER of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the limitation on capital losses and index the limitation to inflation. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Capital Loss Inflation 4 Fairness Act’’. 5 SEC. 2. INCREASED LIMITATION ON CAPITAL LOSSES. 6 (a) IN GENERAL.—Section 1211(b) of the Internal 7 Revenue Code of 1986 is amended to read as follows: 8 ‘‘(b) OTHER TAXPAYERS.— 9 VerDate Sep 11 2014 03:43 Apr 25, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2684.IH H2684 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2684 IH ‘‘(1) IN GENERAL.—In the case of a taxpayer 1 other than a corporation, losses from sales or ex- 2 changes of capital assets shall be allowed only to the 3 extent of the gains from such sales or exchanges, 4 plus (if such losses exceed such gains) the lower of— 5 ‘‘(A) $13,000 ($6,500 in the case of a 6 married individual filing a separate return), or 7 ‘‘(B) the excess of such losses over such 8 gains. 9 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 10 any taxable year beginning in a calendar year after 11 2023, the dollar amounts in paragraph (1)(A) shall 12 be increased by an amount equal to— 13 ‘‘(A) such dollar amount, multiplied by 14 ‘‘(B) the cost-of-living adjustment under 15 section 1(f)(3) for the calendar year in which 16 the taxable year begins, determined by sub- 17 stituting ‘calendar year 2022’ for ‘calendar year 18 2016’ in subparagraph (A)(ii) thereof.’’. 19 (b) EFFECTIVE DATE.—The amendment made by 20 this section shall apply to losses in taxable years beginning 21 after December 31, 2022. 22 Æ VerDate Sep 11 2014 03:43 Apr 25, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H2684.IH H2684 kjohnson on DSK79L0C42PROD with BILLS