Capital Loss Inflation Fairness Act
Raises the capital-loss deduction limit for individuals and adjusts it for inflation beginning with taxable years after 2026.
In the House Ways and Means Committee since Oct. 1, 2026, 7 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROOCT 1, 2026
- COMMITTEECOMM.IN COMMITTEE
- HOUSEHOUSE—
- SENATESENATE—
- LAWLAW—
What the bill would do, and why it matters
Tax rules let people use investment losses to offset investment gains, but limit how much excess loss they can claim. The bill would raise that limit for individuals and adjust it for inflation. It would apply to losses in taxable years beginning after December 31, 2025.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Raises the capital-loss deduction limit
For taxpayers other than corporations, losses could offset capital gains plus up to $14,250 in excess losses, or $7,125 for a married individual filing separately. The deduction would not exceed the taxpayer’s actual losses beyond gains.
- Adjusts the limit for inflation
For taxable years beginning after 2026, the dollar limits would increase with a cost-of-living adjustment and be rounded to the nearest $25.
- Applies the change to 2026 tax years
The changes would apply to losses in taxable years beginning after December 31, 2025.
The practical difference is how much of an individual’s capital losses beyond their gains can be used to reduce taxable income. Adjusting the limits for inflation would keep them from remaining fixed in dollar terms.
Written from the bill text.
The path it took, step by step
- IntroducedOCT 1, 2026HOUSEOCT 1, 2026By Rep. Norman with 4 original cosponsorsReferred to Ways and Means
- SAME DAYNOWHouse committeeOCT 1, 2026WAYS & MEANS NOWOCT 1, 2026In committee for 7 daysNo hearing yet
- 7 DAYS SO FARPassed the House—HOUSE FLOOR—Not scheduled
- Senate committee—SENATE—
- Passed the Senate—SENATE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- OCT 12026OCT 1, 2026REFERREDHOUSEReferred to the House Committee on Ways and Means.
- OCT 12026OCT 1, 2026INTRODUCEDHOUSEIntroduced in House
At day 7, this bill is already older than 3% of the laws passed this Congress were when they were signed.
Where your members stand on it
A coalition from 4 states
Plus the sponsor, a Republican. Every cosponsor is from one party.
Plus the sponsor, a Republican. Every cosponsor is from one party.
Rep. Norman’s record: sponsored 23 bills this Congress. 2 passed the House; 1 became law.
- Sheri BiggsR-SC-3ORIGINAL
- Michael CloudR-TX-27ORIGINAL
- Andy HarrisR-MD-1ORIGINAL
- Thomas MassieR-KY-4ORIGINAL
What readers think
Discussion
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