Capital Gains Relief and Simplification Act of 2001

Capital Gains Relief and Simplification Act of 2001 - Amends the Internal Revenue Code to allow an individual a long-term capital gains deduction equal to the sum of: (1) the lesser of the net capital gain of the taxpayer for the taxable year, or $1,000 ($2,000 in the case of a joint return); and (2) 50 percent of such gain not taken into account under (1). Sets forth rules concerning: (1) section 1250 property (gain from dispositions of depreciable realty); (2) pass-thru entities; (3) coordination with maximum capital gains rates; and (4) collectibles.

Decreases the from one year to six months the holding period required for long-term capital gain treatment.

Increases the limitation on the capital losses of non-corporate taxpayers allowable against ordinary income.

Sets forth a special rule suspending, for members of the uniformed services and foreign service, the five year period applicable to excluding gain from the sale of a principal residence.