Higher capital loss deduction limits and inflation adjustment.
This bill increases the maximum amount of capital losses that individuals can deduct from their income in a given tax year. The new limit rises from $3,000 to $13,000 ($6,500 for married individuals filing separately) and, significantly, will be adjusted annually for inflation. This means citizens who incur investment losses will be able to reduce their taxable income by a larger amount, directly impacting their personal finances.
Key points
The annual capital loss deduction limit for individuals is increased from $3,000 to $13,000.
The new capital loss deduction limit will be indexed annually to the cost-of-living adjustment (inflation), preserving the real value of the deduction.
The changes apply to losses incurred in tax years beginning after December 31, 2022.
Status:
Expired
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