HB122 Alabama 2020 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2020

Title

Income tax, exclude gains and losses derived from exchange of precious metal bullions from calculation of gross income, Secs. 40-18-14, 40-18-15 am'd.

Summary

HB 122 would exempt net gains from exchanging precious metal bullion from Alabama state gross income and allow net losses from bullion exchanges to be deductible, effective for tax years beginning in 2020.

What This Bill Does

The bill amends Alabama tax law (Sections 40-18-14 and 40-18-15) to treat bullion gains and losses specially. It excludes net capital gains from the exchange of precious metal bullion from an individual's gross income. It also allows as a deduction the net capital losses from the exchange of precious metal bullion, reducing taxable income. The bill defines precious metal bullion and ties its changes to tax years starting after January 1, 2020.

Who It Affects

• Individual Alabama taxpayers with net capital gains from exchanging precious metal bullion would have those gains excluded from gross income (no state tax on that gain).
• Individual Alabama taxpayers with net capital losses from exchanging precious metal bullion would be able to deduct those losses, reducing their Alabama taxable income.

Key Provisions

• Excludes net capital gains derived from the exchange of precious metal bullion from gross income (Section 40-18-14(3)(m)).
• Allows as a deduction the net capital losses derived from the exchange of precious metal bullion (Section 40-18-15(a)(29)).
• Defines precious metal bullion as coins, bars, or rounds containing primarily refined gold, silver, or other precious metals, either by weight/purity/content or minted by a government authority.
• Effective for tax years commencing on or after January 1, 2020 (Sound Money Tax Neutrality Act).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Income Tax