Precious Metal Bullion, exchange excludes net gain from gross income, grants net capital loss deduction from gross income

This bill, known as the Sound Money Tax Neutrality Act, changes how Alabama taxes individuals who trade in precious metal bullion such as gold, silver, platinum, and palladium. It removes the requirement for taxpayers to include net profits from these exchanges in their state gross income, while simultaneously allowing them to deduct net losses from the same activity. By aligning state tax treatment with federal rules for these specific metal transactions, the law ensures that gains and losses from buying and selling these coins, bars, or rounds do not affect an individual's Alabama state income tax liability.