# 26 U.S.C. § 1211: Limitation on capital losses

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s1211>. Cite pinpoints as 26 U.S.C. § 1211(a)(1).

## § 1211(a) Corporations

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.

## § 1211(b) Other taxpayers

In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—

**§ 1211(b)(1)** $3,000 ($1,500 in the case of a married individual filing a separate return), or

**§ 1211(b)(2)** the excess of such losses over such gains.

## Regulations

- [Treas. Reg. § 1.1211-1](/26/reg/1.1211-1.md): Limitation on capital losses. (interprets § 1211)

## Leading cases

- [Freeland v. Commissioner, 74 T.C. 970 (1980)](https://www.courtlistener.com/opinion/4705253/freeland-v-commissioner/)
- [Perkins v. Commissioner, 129 T.C. 58 (2007)](https://www.courtlistener.com/opinion/4697005/perkins-v-commr/)
- [Montgomery v. Commissioner, 127 T.C. 43 (2006)](https://www.courtlistener.com/opinion/4696971/montgomery-v-commr/)

## Connections

Cites: none

Cited by: § 641 Imposition of tax; § 1212 Capital loss carrybacks and carryovers; § 1222 Other terms relating to capital gains and losses; § 1231 Property used in the trade or business and involuntary conversions; § 6662A Imposition of accuracy-related penalty on understatements with respect to reportable transactions

Derived from: 1939 § 117(d)

## Amendments

- 1954-08-16: [Act Aug. 16, 1954, ch. 736](/26/act/1954-ch736.md), 68A Stat. 321
- 1969-12-30: [Pub. L. 91-172](/26/act/91-172.md), 83 Stat. 642
- 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1559
- 1977-05-23: [Pub. L. 95-30](/26/act/95-30.md), 91 Stat. 138
- 1986-10-22: [Pub. L. 99-514](/26/act/99-514.md), 100 Stat. 2217