Capital Gains Inflation Relief Act of 2025

# Capital Gains Inflation Relief Act of 2025 - Summary **What the Bill Would Do** This bill would adjust how capital gains taxes are calculated by accounting for inflation. Currently, when someone sells an investment (like stocks or property) for a profit, they pay taxes on the full gain in value. Under this bill, that gain would be reduced by the amount of inflation that occurred while they owned the asset, potentially lowering the tax owed. For example, if someone bought stock for $100,000 and sold it for $150,000 ten years later, but inflation accounted for $30,000 of that increase, they would only owe taxes on a $20,000 gain instead of $50,000. **Who It Affects and Current Status** This bill would primarily benefit people who own investments like stocks, real estate, and other assets that appreciate over time—particularly those with significant long-term holdings.

It could reduce tax revenue for the federal government. The bill is currently in committee, meaning it has been introduced but has not yet been voted on by the full House of Representatives. The bill was sponsored by Representative Warren Davidson, a Republican from Ohio.