Kay Bell says Senator Orin Hatch (R-UT) has introduced a bill that would raise the capital loss deduction from $3,000 to $10,000:
Hatch, in a statement announcing the legislation, noted that the $3,000 limitation has been in the tax law since 1978. “Had this limitation been indexed for inflation back in 1978, the $3,000 limit would instead now be about $9,700.”
“This is a question of fairness,” he said. “Allowing individual investors to deduct only $3,000 per year when their total losses may come to many times that much is simply not fair. The tax code taxes gains without limit, so it should not place such a restrictive limitation on losses.”
The current limitation of $3,000 does seem rather meager, doesn’t it?
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3 responses so far ↓
1 Monica Lawver // May 8, 2009 at 9:39 am
Yes, it does seem meager! It seemed wimpy back when everyone had their losses from the dot-com bust, and it seems even more pathetic with everyone’s 2008 losses.
2 Peter // May 8, 2009 at 10:25 am
Hi Monica,
Maybe there should be no limitation on losses because, like Hatch says, they never let you carry over your gains!
3 Beth // Jun 25, 2010 at 11:49 am
Any update on Senator Hatch’s legislation? He read my mind, and this increase in capita loss deductions are way overdue!
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