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H.R. 2684House118th Congress (2023-2025)In Committee

Capital Loss Inflation Fairness Act

To amend the Internal Revenue Code of 1986 to increase the limitation on capital losses and index the limitation to inflation.

Sponsored by Ralph NormanRep. Ralph Norman (R-SC)
Introduced April 18, 2023

AI-Generated Summary

Updated January 20, 2026 at 6:19 AM UTC

The Capital Loss Inflation Fairness Act raises the amount of capital losses that individual taxpayers can deduct each year and ties that limit to inflation. It changes the current $3,000 cap to $13,000 for single filers (or $6,500 for married filing separately) and adjusts the figure each year based on the cost‑of‑living index. The amendment applies to tax years beginning after December 31, 2022 and affects non‑corporate taxpayers who have capital losses.

Key Provisions

  • Increases the annual capital loss deduction limit to $13,000 for individuals (or $6,500 for married filing separately).
  • Indexes the new loss limit to inflation using the cost‑of‑living adjustment, with the base year updated to 2022.
  • Applies the higher, inflation‑adjusted limit to taxable years beginning after December 31, 2022.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 18, 2023

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HouseIntro Referral

Introduced in House

April 18, 2023

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

April 18, 2023

Bill Text

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Introduced in HouseIssued April 18, 2023

I

118th CONGRESS

1st Session

H. R. 2684

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.

1.

Short title

This Act may be cited as the Capital Loss Inflation Fairness Act.

2.

Increased limitation on capital losses

(a)

In general

Section 1211(b) of the Internal Revenue Code of 1986 is amended to read as follows:

(b)

Other taxpayers

(1)

In general

In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—

(A)

$13,000 ($6,500 in the case of a married individual filing a separate return), or

(B)

the excess of such losses over such gains.

(2)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2023, the dollar amounts in paragraph (1)(A) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 for calendar year 2016 in subparagraph (A)(ii) thereof.

.

(b)

Effective date

The amendment made by this section shall apply to losses in taxable years beginning after December 31, 2022.