KY HB82

Capital gains and capital losses from the sale or exchange of currency or bullion would be excluded from Kentucky state income tax calculations for both individual taxpayers and corporations, effective for taxable years beginning on or after January 1, 2027.

"Currency" and "bullion" are defined by reference to KRS 139.480, which governs sales tax exemptions for precious metals.

The bill amends KRS 141.019 (individual income tax) and KRS 141.039 (corporate income tax) to add identical provisions ignoring these gains and losses when calculating adjusted gross income.

Existing income tax exclusions remain unchanged, including exclusions for Social Security benefits, military pay, pension distributions up to $31,110, and income from eminent domain property seizures.