Capital Gains Inflation Relief Act of 2025

Key Points

• This bill changes how the government calculates capital gains taxes on investments. Instead of taxing you on the full increase in dollar value, it lets you adjust the original purchase price upward to account for inflation, so you only pay taxes on real gains in purchasing power.
• The inflation adjustment applies to common stocks in U.S. and certain foreign corporations, digital assets like cryptocurrency recorded on a blockchain, and tangible property. It does not apply to corporations themselves, only to individual taxpayers.
• To qualify for the inflation adjustment, taxpayers must hold the asset for more than three years and have written proof of what they originally paid. The adjustment is calculated using the GDP price deflator, a broad measure of price changes across the entire economy.
• The law would only apply to assets purchased after December 31, 2025. People who already own stocks, crypto, or property would not be able to use the inflation adjustment when they sell those existing holdings.
• Digital assets are specifically defined to include cryptocurrency and similar blockchain-based tokens. This is one of the first tax provisions to create a distinct inflation-indexing benefit specifically for crypto investors.