Internal Revenue Code · 26 U.S.C.
§ 1222. Other terms relating to 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)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1222
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- February 26, 1964 by Pub. L. 88–272
- Last amended
- December 19, 2014 by Pub. L. 113–295
- Amendments
- 5 dated changes in the source credit
- Length
- 11 subsections · 539 words · about 2 min to read
- Defines
- 11 terms
- Cross-references
- cites 2; cited by 5 Code sections and 29 other regulations
- Regulations
- 1 issued under this section
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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. 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; Pub. L. 113–295, div. A, title II, § 221(a)(79), Dec. 19, 2014, 128 Stat. 4049.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- capital gain net income § 1222(9)
- long-term capital gain § 1222(3)
- long-term capital loss § 1222(4)
- net capital gain § 1222(11)
- net capital loss § 1222(10)
- net long-term capital gain § 1222(7)
- net long-term capital loss § 1222(8)
- net short-term capital gain § 1222(5)
- net short-term capital loss § 1222(6)
- short-term capital gain § 1222(1)
- short-term capital loss § 1222(2)
Regulations under this section
Treasury regulations (26 CFR) issued under § 1222
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 2 other sections
Cited by 5 Code sections
- § 32(i)(2)(D) Earned income
- § 265(a)(3) Expenses and interest relating to tax-exempt income
- § 4981(e)(2)(A) Excise tax on undistributed income of real estate investment trusts
- § 4982(e)(2)(A) Excise tax on undistributed income of regulated investment companies
- § 6045(g)(2)(A) Returns of brokers
Cited in 29 regulations not issued under it
- § 1.165-5 Worthless securities.
- § 1.199A-1 Operational rules.
- § 1.367(a)-6T Transfer of foreign branch with previously deducted losses (temporary).
- § 1.382-6 Allocation of income and loss to periods before and after the change date for purposes of section 382.
- § 1.421-2 General rules.
- § 1.582-1 Bad debts, losses, and gains with respect to securities held by financial institutions.
- § 1.642(c)-2 Unlimited deduction for amounts permanently set aside for a charitable purpose.
- § 1.642(c)-3 Adjustments and other special rules for determining unlimited charitable contributions deduction.
- § 1.665(d)-1A Taxes imposed on the trust.
- § 1.801-8 Contracts with reserves based on segregated asset accounts.
- § 1.802-3 Tax imposed on life insurance companies.
- § 1.804-3 Gross investment income of a life insurance company.
- § 1.809-4 Gross amount.
- § 1.817-2 Treatment of capital gains and losses.
- § 1.817-4 Special rules.
- § 1.861-18 Classification of, and source of gross income from, digital content transactions.
- § 1.904(b)-1 Special rules for capital gains and losses.
- § 1.1061-4 Section 1061 computations.
- § 1.1061-6 Reporting rules.
- § 1.1092(b)-2T Treatment of holding periods and losses with respect to straddle positions (temporary).
- § 1.1201-1 Alternative tax.
- § 1.1212-1 Capital loss carryovers and carrybacks.
- § 1.1234-2 Special rule for grantors of straddles applicable to certain options granted on or before September 1, 1976.
- § 1.1237-1 Real property subdivided for sale.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 113–295
- Amended by Pub. L. 111–325
- Amended by Pub. L. 98–369
- Amended by Pub. L. 94–455
- Amended by Pub. L. 91–172
- Enacted by Pub. L. 88–272
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter P Capital Gains and Losses
- Part III GENERAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES
Nearby sections
- § 1221 Capital asset defined
- § 1222 Other terms relating to capital gains and losses
- § 1223 Holding period of property
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
2014—Pub. L. 113–295 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.”
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).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date of 2010 Amendment
Except as otherwise provided, amendment by Pub. L. 111–325 applicable to net capital losses for taxable years beginning after Dec. 22, 2010, see section 101(c) 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 511(a) of Pub. L. 91–172 applicable with respect to taxable years beginning after Dec. 31, 1969, see section 511(d) of Pub. L. 91–172, set out as an Effective Date note under section 852 of this title.
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.