Capital Gains Inflation Relief Act of 2025

The Capital Gains Inflation Relief Act of 2025 would allow taxpayers to adjust the basis of certain assets for inflation when calculating capital gains tax. For assets held more than three years, it would create an "indexed basis" (adjusted basis plus inflation adjustment based on GDP deflator changes) for assets like stocks, digital assets, and property. This would potentially reduce taxable capital gains on qualifying assets. The bill would apply to assets acquired after December 31, 2025, with specific exceptions for certain foreign stocks and transactions between related parties.