Capital Gains Inflation Indexing
Current understanding
Proposals to index the cost basis of capital assets to inflation when computing taxable gains, so that inflationary (non-real) appreciation is not taxed. If enacted, holders of long-held appreciated assets (stocks, real estate, business interests) would pay less capital gains tax; the federal government would collect less revenue. Status: S798 (Capital Gains Inflation Relief Act of 2025) introduced; no enacted mechanism.
Evidence log
- 2026-07-22 — A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.: cross-connection with social-security-benefits-taxation-inflation-adjustment: Both proposals apply inflation indexing to statutory IRC dollar thresholds that are not currently adjusted, shifting tax burden downward over time as inflation accrues. (novelty: 2)
- 2025-03-05 — Capital Gains Inflation Relief Act of 2025: 2025 — HR1857 (House companion to S798), Capital Gains Inflation Relief Act of 2025, introduced and referred to House Ways and Means Committee; same core mechanism of indexing capital gains basis to inflation. (novelty: 2)
- 2025-02-27 — Capital Gains Inflation Relief Act of 2025: cross-connection with taxation-housing-capital-gains: Inflation indexing of capital gains basis would apply to home sales above the §121 exclusion, overlapping with housing-specific capital gains relief proposals. (novelty: 2)