Capital Loss Inflation Fairness Act

Higher capital loss deduction for individuals

If enacted, this bill would raise the annual limit non‑corporate taxpayers can deduct for net capital losses. For tax years beginning after December 31, 2025, you could deduct capital losses up to your capital gains plus, if losses exceed gains, the lesser of the excess loss or $14,250. The limit would be $7,125 for someone filing married filing separately. For tax years beginning after 2026, those dollar caps would be increased each year for inflation using the bill's cost‑of‑living formula, with each increase rounded to the nearest $25.