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Internal Revenue Code · 26 U.S.C.

Subchapter P. Capital Gains and Losses

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). The official version is at uscode.house.gov (external site).

  1. Part I TREATMENT OF CAPITAL GAINS §§ 1201–1202

    1. § 1201 Repealed
    2. § 1202 Partial exclusion for gain from certain small business stock

  2. Part II TREATMENT OF CAPITAL LOSSES §§ 1211–1212

    1. § 1211 Limitation on capital losses
    2. § 1212 Capital loss carrybacks and carryovers

  3. Part III GENERAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES §§ 1221–1223

    1. § 1221 Capital asset defined
    2. § 1222 Other terms relating to capital gains and losses
    3. § 1223 Holding period of property

  4. Part IV SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES §§ 1231–1260

    1. § 1231 Property used in the trade or business and involuntary conversions
    2. § 1232–1232B Repealed
    3. § 1233 Gains and losses from short sales
    4. § 1234 Options to buy or sell
    5. § 1234A Gains or losses from certain terminations
    6. § 1234B Gains or losses from securities futures contracts
    7. § 1235 Sale or exchange of patents
    8. § 1236 Dealers in securities
    9. § 1237 Real property subdivided for sale
    10. § 1238 Repealed
    11. § 1239 Gain from sale of depreciable property between certain related taxpayers
    12. § 1240 Repealed
    13. § 1241 Cancellation of lease or distributor’s agreement
    14. § 1242 Losses on small business investment company stock
    15. § 1243 Loss of small business investment company
    16. § 1244 Losses on small business stock
    17. § 1245 Gain from dispositions of certain depreciable property
    18. § 1246, 1247 Repealed
    19. § 1248 Gain from certain sales or exchanges of stock in certain foreign corporations
    20. § 1249 Gain from certain sales or exchanges of patents, etc., to foreign corporations
    21. § 1250 Gain from dispositions of certain depreciable realty
    22. § 1251 Repealed
    23. § 1252 Gain from disposition of farm land
    24. § 1253 Transfers of franchises, trademarks, and trade names
    25. § 1254 Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
    26. § 1255 Gain from disposition of section 126 property
    27. § 1256 Section 1256 contracts marked to market
    28. § 1257 Disposition of converted wetlands or highly erodible croplands
    29. § 1258 Recharacterization of gain from certain financial transactions
    30. § 1259 Constructive sales treatment for appreciated financial positions
    31. § 1260 Gains from constructive ownership transactions

  5. Part V SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS §§ 1271–1288

    1. Subpart A Original Issue Discount §§ 1271–1275

      1. § 1271 Treatment of amounts received on retirement or sale or exchange of debt instruments
      2. § 1272 Current inclusion in income of original issue discount
      3. § 1273 Determination of amount of original issue discount
      4. § 1274 Determination of issue price in the case of certain debt instruments issued for property
      5. § 1274A Special rules for certain transactions where stated principal amount does not exceed $2,800,000
      6. § 1275 Other definitions and special rules

    2. Subpart B Market Discount on Bonds §§ 1276–1278

      1. § 1276 Disposition gain representing accrued market discount treated as ordinary income
      2. § 1277 Deferral of interest deduction allocable to accrued market discount
      3. § 1278 Definitions and special rules

    3. Subpart C Discount on Short-Term Obligations §§ 1281–1283

      1. § 1281 Current inclusion in income of discount on certain short-term obligations
      2. § 1282 Deferral of interest deduction allocable to accrued discount
      3. § 1283 Definitions and special rules

    4. Subpart D Miscellaneous Provisions §§ 1286–1288

      1. § 1286 Tax treatment of stripped bonds
      2. § 1287 Denial of capital gain treatment for gains on certain obligations not in registered form
      3. § 1288 Treatment of original issue discount on tax-exempt obligations

  6. Part VI TREATMENT OF CERTAIN PASSIVE FOREIGN INVESTMENT COMPANIES §§ 1291–1298

    1. Subpart A Interest on Tax Deferral § 1291

      1. § 1291 Interest on tax deferral

    2. Subpart B Treatment of Qualified Electing Funds §§ 1293–1295

      1. § 1293 Current taxation of income from qualified electing funds
      2. § 1294 Election to extend time for payment of tax on undistributed earnings
      3. § 1295 Qualified electing fund

    3. Subpart C Election of Mark to Market for Marketable Stock § 1296

      1. § 1296 Election of mark to market for marketable stock

    4. Subpart D General Provisions §§ 1297–1298

      1. § 1297 Passive foreign investment company
      2. § 1298 Special rules