Bill > HB625

This bill amends Kentucky tax laws to modify how capital gains and losses from the sale or exchange of currency or bullion are treated for both individual and corporate taxpayers, starting in taxable years beginning on or after January 1, 2026. Specifically, the bill instructs taxpayers to ignore (or disregard) any capital gains or losses that result from selling or exchanging currency or bullion. The terms "currency" and "bullion" are defined using the existing definition in KRS 139.480, which typically refers to coins, paper money, and precious metals like gold or silver in bullion form. By requiring taxpayers to ignore these capital gains and losses, the bill effectively means that such transactions will not impact an individual's or corporation's taxable income in Kentucky, regardless of whether they made a profit or loss from the sale or exchange. This change applies to both individual taxpayers (in KRS 141.019) and corporate taxpayers (in KRS 141.039), creating a consistent approach to the tax treatment of currency and bullion transactions across different types of taxpayers.