# Capital Gains Inflation Relief Act of 2025

This bill changes how people pay taxes when they sell investments or property that they've held for more than three years. Specifically, it lets you adjust your cost basis—the amount you originally paid for an asset—by accounting for inflation before calculating how much profit (or loss) you made on the sale.

Here's how it works in practice. Say you bought stock for $10,000 in 2015 and sold it for $15,000 in 2026. Normally, you'd owe capital gains tax on the $5,000 profit. Under this bill, you could increase your original $10,000 cost basis by an inflation adjustment based on how much prices have risen since you bought it. If inflation adjusted your basis to $12,000, you'd only owe tax on $3,000 in gains instead of $5,000. The bill uses the government's gross domestic product deflator—an official measure of inflation—to calculate this adjustment.

The bill applies to several types of investments: stocks in U.S. corporations, real estate and other tangible property, and digital assets like cryptocurrency. It also covers stocks in foreign companies that trade on established exchanges. However, it doesn't apply to corporations themselves—only individuals benefit from this adjustment. You also need to have written documentation of what you originally paid for the asset, and you must have held it for more than three years. The bill includes various safeguards to prevent people from gaming the system, such as disallowing the benefit if you've hedged your investment to reduce risk or if you're selling to a family member.