[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5212 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5212

 To amend the Internal Revenue Code of 1986 to increase the limitation 
on capital losses an individual may deduct against ordinary income, and 
                  to adjust such amount for inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2002

  Mr. Istook introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the limitation 
on capital losses an individual may deduct against ordinary income, and 
                  to adjust such amount for inflation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TREATMENT OF CAPITAL LOSSES OF TAXPAYERS OTHER THAN 
              CORPORATIONS.

    (a) Increase in Limitation on Losses Allowable Against Ordinary 
Income.--Paragraph (1) of section 1211(b) of the Internal Revenue Code 
of 1986 (relating to limitation on capital losses of taxpayers other 
than corporations) is amended--
            (1) by striking ``$3,000'' and inserting ``$20,000'', and
            (2) by striking ``$1,500'' and inserting ``$10,000''.
    (b) Adjustment for Inflation.--Section 1211 of such Code (relating 
to limitation on capital losses) is amended by adding at the end the 
following new subsection:
    ``(c) Adjustment for Inflation.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2002, the $20,000 and 
        $10,000 amounts contained in subsection (b)(1) shall each be 
        increased by an amount equal to--
                    ``(A) such amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins by substituting `calendar year 
                2001' for `calendar year 1992' in subparagraph (B) 
                thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $5, such increase shall be rounded to 
        the next highest multiple of $5.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.
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