Short-term capital gain
The term “short-term capital gain” means gain from the sale or exchange of a capital asset held for not more than 1 year, if and to the extent such gain is taken into account in computing gross income.
Short-term capital loss
The term “short-term capital loss” means loss from the sale or exchange of a capital asset held for not more than 1 year, if and to the extent that such loss is taken into account in computing taxable income.
Long-term capital gain
The term “long-term capital gain” means gain from the sale or exchange of a capital asset held for more than 1 year, if and to the extent such gain is taken into account in computing gross income.
Long-term capital loss
The term “long-term capital loss” means loss from the sale or exchange of a capital asset held for more than 1 year, if and to the extent that such loss is taken into account in computing taxable income.
Net short-term capital gain
The term “net short-term capital gain” means the excess of short-term capital gains for the taxable year over the short-term capital losses for such year.
Net short-term capital loss
The term “net short-term capital loss” means the excess of short-term capital losses for the taxable year over the short-term capital gains for such year.
Net long-term capital gain
The term “net long-term capital gain” means the excess of long-term capital gains for the taxable year over the long-term capital losses for such year.
Net long-term capital loss
The term “net long-term capital loss” means the excess of long-term capital losses for the taxable year over the long-term capital gains for such year.
Capital gain net income
The term “capital gain net income” means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges.
Net capital loss
The term “net capital loss” means the excess of the losses from sales or exchanges of capital assets over the sum allowed under section 1211. In the case of a corporation, for the purpose of determining losses under this paragraph, amounts which are short-term capital losses under section 1212(a)(1) shall be excluded.
Net capital gain
The term “net capital gain” means the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year.
Aug. 16, 1954, ch. 73668A Stat. 322Pub. L. 88–272, title II, § 230(b)78 Stat. 100Pub. L. 91–172, title V83 Stat. 635Pub. L. 94–455, title XIV, § 1402(a)(1)90 Stat. 1731Pub. L. 98–369, div. A, title X, § 1001(a)98 Stat. 1011Pub. L. 111–325, title I, § 101(b)(2)124 Stat. 3538Pub. L. 113–295, div. A, title II, § 221(a)(79)128 Stat. 4049(, ; , , ; , §§ 511(a), 513(c), , , 643; , (2), (d), title XIX, § 1901(a)(136), , , 1733, 1787; , (e), , , 1012; , , ; , , .)
Editorial Notes
Amendments
Pub. L. 113–2952014— struck out concluding provisions which read as follows: “For purposes of this subtitle, in the case of futures transactions in any commodity subject to the rules of a board of trade or commodity exchange, the length of the holding period taken into account under this section or under any other section amended by section 1402 of the Tax Reform Act of 1976 shall be determined without regard to the amendments made by subsections (a) and (b) of such section 1402.”
Pub. L. 111–3252010—Par. (10). substituted “section 1212(a)(1)” for “section 1212”.
Pub. L. 98–3691984—Pars. (1) to (4). substituted “6 months” for “1 year”, applicable to property acquired after , and before . See Effective Date of 1984 Amendment note below.
Pub. L. 94–455, § 1402(a)(2)1976—Pars. (1) to (4). , provided that “9 months” would be changed to “1 year”.
Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
Pub. L. 94–455, § 1901(a)(136)(A)Par. (9). , substituted “Capital gain net income” and “capital gain net income” for “Net capital gain” and “net capital gain” in heading and text.
Pub. L. 94–455, § 1901(a)(136)(B)Par. (11). , substituted “Net capital gain” and “net capital gain” for “Net section 1201 gain” and “net section 1201 gain” in heading and text.
Pub. L. 94–455, § 1402(d), inserted sentence at end relating to length of holding period in case of futures transactions in commodities.
Pub. L. 91–172, § 513(c)1969—Par. (9). , substituted “The” for “In the case of a corporation, the”.
Pub. L. 91–172, § 511(a)Par. (11). , added par. (11).
Pub. L. 88–2721964—Pars. (9), (10). struck out provisions from par. (9) relating to taxpayers other than corporations, and inserted “In the case of a corporation” in par. (10).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Pub. L. 113–295section 221(b) of Pub. L. 113–295section 1 of this titleAmendment by effective , subject to a savings provision, see , set out as a note under .
Effective Date of 2010 Amendment
Pub. L. 111–325section 101(c) of Pub. L. 111–325section 1212 of this titleExcept as otherwise provided, amendment by applicable to net capital losses for taxable years beginning after , see , set out as a note under .
Effective Date of 1984 Amendment
Pub. L. 98–369section 1001(e) of Pub. L. 98–369section 166 of this titleAmendment by applicable to property acquired after , and before , see , set out as a note under .
Effective Date of 1976 Amendment
Pub. L. 94–455, title XIV, § 1402(a)(1)90 Stat. 1731, , , provided that the amendment made by that section is effective with respect to taxable years beginning in 1977.
Pub. L. 94–455, title XIV, § 1402(a)(2)90 Stat. 1731, , , provided that the amendment made by that section is effective with respect to taxable years beginning after .
section 1901(a)(136) of Pub. L. 94–455section 1901(d) of Pub. L. 94–455section 2 of this titleAmendment by applicable with respect to taxable years beginning after , see , set out as a note under .
Effective Date of 1969 Amendment
section 511(a) of Pub. L. 91–172section 511(d) of Pub. L. 91–172section 852 of this titleAmendment by applicable with respect to taxable years beginning after , see , set out as an Effective Date note under .
section 513(c) of Pub. L. 91–172section 513(d) of Pub. L. 91–172section 1211 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 1964 Amendment
Pub. L. 88–272section 230(c) of Pub. L. 88–272section 1212 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .