HB376 Alabama 2021 Session

Summary

Primary Sponsor

Andrew SorrellAuditor

Republican

Session

Regular Session 2021

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

The bill would make net gains from exchanging precious metal bullion tax-free and allow net losses from bullion exchanges as deductions for Alabama individual income tax.

What This Bill Does

It amends Alabama's personal income tax rules to exclude net capital gains from the exchange of precious metal bullion from gross income. It also allows a deduction for net capital losses from such bullion exchanges. The bill defines what counts as precious metal bullion and says these changes apply to tax years beginning in 2021, under the name Sound Money Tax Neutrality Act.

Who It Affects

• Alabama resident individual taxpayers who exchange precious metal bullion would have bullion-related net capital gains excluded from their gross income and bullion-related net capital losses deductible.
• Nonresident individual taxpayers with Alabama-source income who exchange precious metal bullion would have bullion-related net capital gains excluded from Alabama gross income and bullion-related net capital losses deductible to the extent they pertain to Alabama income.

Key Provisions

• Excludes net capital gains derived from the exchange of precious metal bullion from gross income for individuals.
• Allows a deduction for net capital losses derived from the exchange of precious metal bullion.
• Defines precious metal bullion as coins, bars, or rounds containing primarily refined gold, silver, or other precious metals, and specifies two ways bullion can be identified (by weight/purity/content or by government mint).
• Amends Sections 40-18-14 and 40-18-15 of the Alabama Code to implement these changes.
• Establishes the act name as the Sound Money Tax Neutrality Act and applies the changes to tax years commencing on or after January 1, 2021.

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