Internal Revenue Code · 26 U.S.C.
§ 1211. Limitation on capital 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)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1211
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- December 30, 1969 by Pub. L. 91–172
- Last amended
- October 22, 1986 by Pub. L. 99–514
- Amendments
- 3 dated changes in the source credit
- Length
- 2 subsections · 166 words · about 1 min to read
- Cross-references
- cites 0; cited by 8 Code sections and 26 other regulations
- Regulations
- 1 issued under this section
In the case of a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of gains from such sales or exchanges.
(Aug. 16, 1954, ch. 736, 68A Stat. 321; Pub. L. 91–172, title V, § 513(a), Dec. 30, 1969, 83 Stat. 642; Pub. L. 94–455, title V, § 501(b)(6), title XIV, § 1401(a), (b), Oct. 4, 1976, 90 Stat. 1559, 1731; Pub. L. 95–30, title I, § 102(b)(14), May 23, 1977, 91 Stat. 138; Pub. L. 99–514, title III, § 301(b)(10), Oct. 22, 1986, 100 Stat. 2217.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 1211
From our articles, not part of the law
Articles that cite this section
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
Cited by 8 Code sections
- § 165(f) Losses
- § 641(c)(2)(D) Imposition of tax
- § 691(c)(4) Recipients of income in respect of decedents
- § 871(e) Tax on nonresident alien individuals
- § 1212(b)(2) Capital loss carrybacks and carryovers
- § 1222(10) Other terms relating to capital gains and losses
- § 1231(a)(4)(A)(ii) Property used in the trade or business and involuntary conversions
- § 6662A(b)(1)(B) Imposition of accuracy-related penalty on understatements with respect to reportable transactions
Cited in 26 regulations not issued under it
- § 1.111-1 Recovery of certain items previously deducted or credited.
- § 1.165-1 Losses.
- § 1.165-2 Obsolescence of nondepreciable property.
- § 1.166-5 Nonbusiness debts.
- § 1.367(e)-2 Distributions described in section 367(e)(2).
- § 1.468A-4 Treatment of nuclear decommissioning fund.
- § 1.468B-2 Taxation of qualified settlement funds and related administrative requirements.
- § 1.469-1 General rules.
- § 1.469-1T General rules (temporary).
- § 1.469-2 Passive activity loss.
- § 1.527-4 Special rules for computation of political organization taxable income.
- § 1.528-10 Special rules for computation of homeowners association taxable income and tax.
- § 1.535-2 Adjustments to taxable income.
- § 1.636-1 Treatment of production payments as loans.
- § 1.641(c)-1 Electing small business trust.
- § 1.642(c)-3 Adjustments and other special rules for determining unlimited charitable contributions deduction.
- § 1.642(h)-1 Unused loss carryovers on termination of an estate or trust.
- § 1.865-2 Loss with respect to stock.
- § 1.1212-1 Capital loss carryovers and carrybacks.
- § 1.1222-1 Other terms relating to capital gains and losses.
- § 1.1231-1 Gains and losses from the sale or exchange of certain property used in the trade or business.
- § 1.1301-1 Averaging of farm and fishing income.
- § 1.1341-1 Restoration of amounts received or accrued under claim of right.
- § 1.1411-4 Definition of net investment income.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter P Capital Gains and Losses
- Part II TREATMENT OF CAPITAL LOSSES
Nearby sections
- § 1211 Limitation on capital losses
- § 1212 Capital loss carrybacks and carryovers
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1986—Subsec. (b). Pub. L. 99–514 amended subsec. (b) generally, substituting present provisions for provisions which had declared in: par. (1), general rule for limitation on capital losses for taxpayer other than corporation; in par. (2), meaning of term “applicable amount”; and in par. (3), rule relating to computation of taxable income.
1977—Subsec. (b)(1)(A). Pub. L. 95–30 inserted “reduced (but not below zero) by the zero bracket amount” after “taxable year”.
1976—Subsec. (b)(1)(B). Pub. L. 94–455, § 1401(a), substituted “the applicable amount” for “$1,000”.
Subsec. (b)(2). Pub. L. 94–455, § 1401(b), substituted provision relating to “applicable amount” for prior provision limiting amount of capital losses for married individuals and reading “In the case of a husband or wife who files a separate return, the amount specified in paragraph (1)(B) shall be $500 in lieu of $1,000.”
Subsec. (b)(3). Pub. L. 94–455, § 501(b)(6), struck out last sentence “If the taxpayer elects to pay the optional tax imposed by section 3, ‘taxable income’ as used in this subsection shall read as ‘adjusted gross income’.”
1969—Subsec. (b). Pub. L. 91–172 provided for only 50 percent of an individual’s long-term capital losses to be offset against his ordinary income up to the $1,000 limit although short-term capital losses continue to be fully deductible within the $1,000 limit and the deduction of capital losses against ordinary income for married persons filing separate returns to be limited to $500 for each spouse rather than the $1,000 formerly allowed.
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, see section 301(c) of Pub. L. 99–514, set out as a note under section 62 of this title.
Effective Date of 1977 Amendment
Amendment by Pub. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Pub. L. 95–30, set out as a note under section 1 of this title.
Effective Date of 1976 Amendment
Amendment by section 501(b)(6) of Pub. L. 94–455 applicable to taxable years beginning after Dec. 31, 1975, see section 508 of Pub. L. 94–455, set out as a note under section 3 of this title.
Pub. L. 94–455, title XIV, § 1401(c), Oct. 4, 1976, 90 Stat. 1731, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 1976.”
Effective Date of 1969 Amendment
Pub. L. 91–172, title V, § 513(d), Dec. 30, 1969, 83 Stat. 643, provided that: “The amendments made by this section [amending this section and sections 1212 and 1222 of this title] shall apply to taxable years beginning after December 31, 1969.”