H.R. 2684 – Reading Mode

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.

Short title

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

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.