I 112th CONGRESS 1st Session H. R. 2049 IN THE HOUSE OF REPRESENTATIVES May 26, 2011 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 limitation on capital losses to $10,500 and to index such limitation to inflation.

1.

Limitation on capital losses of individuals increased to $10,500

(a)

In general

Paragraph (1) of section 1211(b) of the Internal Revenue Code of 1986 (relating to limitation on capital losses) is amended to read as follows: (1)(A)in the case of married individual filing a separate return, 50 percent of the amount in effect under subparagraph (B) for the taxable year, or (B)$10,500 in any other case, or . (b)

Cost-of-Living increase

Section 1211 of such Code is amended by adding at the end the following new subsection: (c)

Cost-of-Living increase

(1)

In general

In the case of any taxable year beginning in a calendar year after calendar year 2011, the $10,500 amount under subsection (b)(1)(B) shall be increased by an amount equal to— (A)such dollar 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, determined by substituting calendar year 2010 for calendar year 1992 in subparagraph (B) thereof. (2)

Rounding

If any amount after adjustment under paragraph (1) is not a multiple of $100, such amount shall be rounded to the next higher multiple of $100. . (c)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2010.