The proposed bill aims to establish the "West Virginia Tax Neutrality Act" by adding a new section, 11-21-98, to the Code of West Virginia. This section specifically addresses the treatment of capital gains and losses in relation to a taxpayer's federal adjusted gross income or federal taxable income. Under this act, individuals, corporations, and fiduciaries are required to add any net capital loss from the sale or exchange of investment metal bullion and investment coins to their federal adjusted gross income or federal taxable income. Conversely, they must subtract any net capital gain from such transactions from their federal adjusted gross income or federal taxable income.

Additionally, the bill defines key terms related to capital gains, including "capital gain transaction," "long-term capital gain," and "short-term capital gain," referencing the definitions provided in the Internal Revenue Code. The act is set to take effect immediately upon enactment. Overall, the legislation seeks to clarify the tax implications of capital gains and losses associated with specific investment assets in West Virginia.

Statutes affected:
Introduced Version: 11-21-98