26-U.S.C.-1222
§1222 – Other Terms Relating to Capital Gains and Losses
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter P > Part III > Section 1222
Details
- Reference: Section 1222
- Legend: §1222 – Other Terms Relating to Capital Gains and Losses
- USCode Year: 2013
Provision Content
For purposes of this subtitle—
(1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) 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.
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.
(Aug. 16, 1954, ch. 736, 68A Stat. 322; Pub. L. 88–272, title II, §230(b), Feb. 26, 1964, 78 Stat. 100; Pub. L. 91–172, title V, §§511(a), 513(c), Dec. 30, 1969, 83 Stat. 635, 643; Pub. L. 94–455, title XIV, §1402(a)(1), (2), (d), title XIX, §1901(a)(136), Oct. 4, 1976, 90 Stat. 1731, 1733, 1787; Pub. L. 98–369, div. A, title X, §1001(a), (e), July 18, 1984, 98 Stat. 1011, 1012; Pub. L. 111–325, title I, §101(b)(2), Dec. 22, 2010, 124 Stat. 3538.)
References in Text
The Tax Reform Act of 1976, referred to in last sentence, is Pub. L. 94–455, Oct. 4, 1976, 90 Stat. 1520, as amended. For complete classification of this Act and of section 1402 of such Act to the Code, see Tables.
Amendments
2010—Par. (10). Pub. L. 111–325 substituted section 1212(a)(1) for section 1212.
1984—Pars. (1) to (4). Pub. L. 98–369 substituted 6 months for 1 year, applicable to property acquired after June 22, 1984, and before Jan. 1, 1988. See Effective Date of 1984 Amendment note below.
1976—Pars. (1) to (4). Pub. L. 94–455, §1402(a)(2), 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.
Par. (9). Pub. L. 94–455, §1901(a)(136)(A), substituted Capital gain net income and capital gain net income for Net capital gain and net capital gain in heading and text.
Par. (11). Pub. L. 94–455, §1901(a)(136)(B), 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.
1969—Par. (9). Pub. L. 91–172, §513(c), substituted The for In the case of a corporation, the.
Par. (11). Pub. L. 91–172, §511(a), added par. (11).
1964—Pars. (9), (10). Pub. L. 88–272 struck out provisions from par. (9) relating to taxpayers other than corporations, and inserted In the case of a corporation in par. (10).
Effective Date of 2010 Amendment
Amendment by Pub. L. 111–325 applicable to net capital losses for taxable years beginning after Dec. 22, 2010, see section 101(c)(1) of Pub. L. 111–325, set out as a note under section 1212 of this title.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–369 applicable to property acquired after June 22, 1984, and before Jan. 1, 1988, see section 1001(e) of Pub. L. 98–369, set out as a note under section 166 of this title.
Effective Date of 1976 Amendment
Pub. L. 94–455, title XIV, §1402(a)(1), Oct. 4, 1976, 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), Oct. 4, 1976, 90 Stat. 1731, provided that the amendment made by that section is effective with respect to taxable years beginning after Dec. 31, 1977.
Amendment by section 1901(a)(136) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title.
Effective Date of 1969 Amendment
Amendment by section 513(c) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 513(d) of Pub. L. 91–172, set out as a note under section 1211 of this title.
Effective Date of 1964 Amendment
Amendment by Pub. L. 88–272 applicable to taxable years beginning after Dec. 31, 1963, see section 230(c) of Pub. L. 88–272, set out as a note under section 1212 of this title.
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