IB 

Union Calendar No. 458

107TH CONGRESS 

2D SESSION H. R. 1619

[Report No. 107–734] 

To amend the Internal Revenue Code of 1986 to increase the limitation 

on capital losses applicable to individuals. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2001

Ms. LOFGREN introduced the following bill; which was referred to the 

Committee on Ways and Means 

OCTOBER 10 (legislative day, OCTOBER 9), 2002

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL

To amend the Internal Revenue Code of 1986 to increase 

the limitation on capital losses applicable to individuals.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

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1 SECTION 1. INCREASE IN LIMITATION ON CAPITAL LOSSES 

2 APPLICABLE TO INDIVIDUALS. 

3 (a) IN GENERAL.—Paragraph (1) of section 1211(b) 

4 of the Internal Revenue Code of 1986 (relating to limita5 tion on capital losses for taxpayers other than corpora6 tions) is amended by striking ‘‘$3,000 ($1,500’’ and in7 serting ‘‘$8,250 ($4,125’’. 

8 (b) ADJUSTMENT FOR INFLATION.—Section 1211 of 

9 such Code (relating to limitation on capital losses) is 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(c) ADJUSTMENT FOR INFLATION.—

13 ‘‘(1) IN GENERAL.—In the case of any taxable 

14 year beginning in a calendar year after 2001, the 

15 $8,250 and $4,125 amounts contained in subsection 

16 (b)(1) shall each be increased by an amount equal 

17 to—

18 ‘‘(i) such amount, multiplied by 

19 ‘‘(ii) the cost-of-living adjustment de20 termined under section 1(f)(3) for the cal21 endar year in which the taxable year be22 gins by substituting ‘calendar year 2000’ 

23 for ‘calendar year 1992’ in subparagraph 

24 (B) thereof. 

25 ‘‘(B) ROUNDING.—If any increase deter26 mined under paragraph (1) is not a multiple of 
3

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1 $5, such increase shall be rounded to the next 

2 highest multiple of $5.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2000.

6 SECTION 1. INCREASE IN LIMITATION ON CAPITAL LOSSES 

7 APPLICABLE TO INDIVIDUALS. 

8 (a) IN GENERAL.—Paragraph (1) of section 1211(b) 

9 of the Internal Revenue Code of 1986 (relating to limitation 

10 on capital losses for taxpayers other than corporations) is 

11 amended by striking ‘‘$3,000 ($1,500’’ and inserting 

12 ‘‘$8,250 (1/2 such amount’’. 

13 (b) ADJUSTMENT FOR INFLATION.—Section 1211 of 

14 such Code (relating to limitation on capital losses) is 

15 amended by adding at the end the following new subsection: 

16 ‘‘(c) ADJUSTMENT FOR INFLATION.—

17 ‘‘(1) IN GENERAL.—In the case of any taxable 

18 year beginning in a calendar year after 2002, the 

19 $8,250 amount contained in subsection (b)(1) shall 

20 each be increased by an amount equal to—

21 ‘‘(A) such amount, multiplied by 

22 ‘‘(B) the cost-of-living adjustment deter23 mined under section 1(f)(3) for the calendar year 

24 in which the taxable year begins by substituting 
4

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1 ‘calendar year 2001’ for ‘calendar year 1992’ in 

2 subparagraph (B) thereof. 

3 ‘‘(2) ROUNDING.—If any increase determined 

4 under paragraph (1) is not a multiple of $50, such 

5 increase shall be rounded to the next highest multiple 

6 of $50.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to taxable years beginning after Decem9 ber 31, 2001.

Union Calendar No. 458

107TH CONGRESS 

2D SESSION H. R. 1619

[Report No. 107–734] 

A BILL

To amend the Internal Revenue Code of 1986 to 

increase the limitation on capital losses applicable to individuals. 

OCTOBER 10 (legislative day, OCTOBER 9), 2002

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed