1. Short title This Act may be cited as the Capital Gains Inflation Relief Act of 2023 . 2. Indexing of certain assets for purposes of determining gain or loss (a) In General Part II of subchapter O of chapter 1 of the Internal Revenue Code of 1986 (relating to basis rules of general application) is amended by redesignating section 1023 as section 1024 and by inserting after section 1022 the following new section: 1023. Indexing of certain assets for purposes of determining gain or loss (a) General rule (1) Indexed basis substituted for adjusted basis Solely for purposes of determining gain or loss on the sale or other disposition by a taxpayer (other than a corporation) of an indexed asset which has been held for more than 3 years, the indexed basis of the asset shall be substituted for its adjusted basis. (2) Exception for depreciation, etc The deductions for depreciation, depletion, and amortization shall be determined without regard to the application of paragraph (1) to the taxpayer or any other person. (3) Written documentation requirement Paragraph (1) shall apply only with respect to indexed assets for which the taxpayer has written documentation of the original purchase price paid or incurred by the taxpayer to acquire such asset. (b) Indexed asset (1) In general For purposes of this section, the term indexed asset means— (A) any common stock in a C corporation (other than a foreign corporation), (B) any digital asset, or (C) any tangible property, which is a capital asset or property used in the trade or business (as defined in section 1231(b)). (2) Stock in certain foreign corporations included For purposes of this section— (A) In general The term indexed asset includes common stock in a foreign corporation which is regularly traded on an established securities market. (B) Exception Subparagraph (A) shall not apply to— (i) stock of a foreign investment company, (ii) stock in a passive foreign investment company (as defined in section 1297), (iii) stock in a foreign corporation held by a United States