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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.
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Expired
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Additional Information
Print number: 118_HR_2684
Sponsor: Rep. Norman, Ralph [R-SC-5]
Process start date: 2023-04-18
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Capital Loss Inflation Fairness Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2684.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-18.

What are the main provisions?

Key points include:

  • 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.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Norman, Ralph [R-SC-5].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Economy