[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5380 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5380

 To amend the Internal Revenue Code of 1986 to increase the amount of 
            capital losses that may offset ordinary income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 12, 2002

Mr. Sensenbrenner 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 amount of 
            capital losses that may offset ordinary income.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investment Protection Act of 2002''.

SEC. 2. INCREASE IN AMOUNT OF CAPITAL LOSS DEDUCTIBLE AGAINST ORDINARY 
              INCOME.

    (a) In General.--Subsection (b) of section 1211 of the Internal 
Revenue Code of 1986 (relating to limitation on capital losses of other 
taxpayers) is amended to read as follows:
    ``(b) Other Taxpayers.--
            ``(1) In general.--In the case of a taxpayer other than a 
        corporation, losses from sales or exchanges of capital assets 
        shall be allowed only to the extent of the gains from such 
        sales or exchanges, plus (if such losses exceed such gains) the 
        lower of--
                    ``(A) the applicable limitation (twice the 
                application limitation in the case of a joint return), 
                or
                    ``(B) the excess of such losses over such gains.
            ``(2) Applicable limitation.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the applicable limitation is $10,000.
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2002, 
                the $10,000 amount contained in subparagraph (A) shall 
                be increased by an amount equal to the product of--
                            ``(i) such dollar amount, and
                            ``(ii) the cost-of-living adjustment 
                        determined under subsection (f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2001' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the next lowest multiple of $50.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2001.
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