H.R. 4661

To amend the Internal Revenue Code of 1986 to increase the limitation on capital loss applicable to individuals.

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I

110th CONGRESS

1st Session

H. R. 4661

IN THE HOUSE OF REPRESENTATIVES

December 13, 2007

Mr. Kagen 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 loss applicable to individuals.

1.

Increase in limitation on capital losses applicable to individuals

(a)

In general

Paragraph (1) of section 1211(b) of the Internal Revenue Code of 1986 (relating to limitation on capital losses) is amended by striking $3,000 ($1,500 and inserting $10,000 (50 percent of such amount, as increased under subsection (c),.

(b)

Adjustment for inflation

Section 1211 of such Code is amended by adding at the end the following new subsection:

(c)

Adjustment for inflation

(1)

In general

In the case of any taxable year beginning in a calendar year after 2008, the $10,000 amount contained in subsection (b)(1) shall be increased by an amount equal to—

(A)

such amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins by substituting calendar year 2007 for calendar year 1992 in subparagraph (B) thereof.

(2)

Rounding

If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next highest multiple of $50.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2007.