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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10690 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 10690

 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

                            October 1, 2026

 Mr. Norman (for himself, Mrs. Biggs of South Carolina, Mr. Harris of 
  Maryland, Mr. Cloud, and Mr. Massie) introduced the following bill; 
         which was referred to the Committee on Ways and Means

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                                 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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) $14,250 ($7,125 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 2026, 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 2025' 
                for `calendar year 2016' in subparagraph (A)(ii) 
                thereof.
        If any increase determined under the preceding sentence is not 
        a multiple of $25, such increase shall be rounded to the 
        nearest multiple of $25.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to losses in taxable years beginning after December 31, 2025.
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Capital Loss Inflation Fairness Act

Full Text
