Capital Gains Relief and Simplification Act of 2001

The Capital Gains Relief and Simplification Act of 2001 (S. 818) proposed several changes to how the federal government taxes the profit made from selling assets like stocks or real estate. The bill sought to allow individuals to deduct up to $1,000 (or $2,000 for married couples) of their capital gains from their taxable income, plus an additional 50% of any remaining gains. It also proposed shortening the time an asset must be held to qualify for lower "long-term" tax rates from one year down to six months.

For the average citizen, these changes would have likely resulted in a lower tax bill when selling investments or property. Additionally, the bill included a specific provision for members of the military and Foreign Service, making it easier for them to claim tax exclusions on the sale of a primary residence even if their service required them to live elsewhere. While the bill was introduced and referred to the Committee on Finance, it did not advance further into law.