§ 1222 Other terms relating to capital gains and losses

OLRC 119-134 · eCFR 2026-10-19 · 1 regs · 6 amending Acts · cited by 5 sections

Enacted 1954 · Act Aug. 16, 1954, ch. 736 Amended · 6 Acts · From 1939 Code § 117(a)

1954196419691976198420102014(1) Short-term capital gain(2) Short-term capital loss(3) Long-term capital gain(4) Long-term capital loss(5) Net short-term capital gain(6) Net short-term capital loss(7) Net long-term capital gain(8) Net long-term capital loss(9) Capital gain net income(10) Net capital loss(11) Net capital gain
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§ 1222 Other terms relating to capital gains and losses
§ 1.1222-1 Other terms relating to capital gains and losses.
Amended 2014
  • 2014 Pub. L. 113-295 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.”

Cases: Commissioner v. Brown, 380 U.S. 563 (1965); Hoven v. Commissioner, 56 T.C. 50 (1971); Carborundum Co. v. Commissioner, 74 T.C. 730 (1980)

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.

Amended 1976, 1984
  • 1984 Pub. L. 98-369 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 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(2), provided that “9 months” would be changed to “1 year”.
  • 1976 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
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    (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.

    “to the extent that such loss is taken into account in computing taxable income.” Opening words
    Textual readingALL OF= a short-term capital loss
    “loss from the sale or exchange of a capital asset”
    “held for not more than 1 year”
    “such loss is taken into account in computing taxable income”
    Amended 1976, 1984
    • 1984 Pub. L. 98-369 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 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(2), provided that “9 months” would be changed to “1 year”.
    • 1976 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.

    (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.

    Amended 1976, 1984
    • 1984 Pub. L. 98-369 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 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(2), provided that “9 months” would be changed to “1 year”.
    • 1976 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
    Research 1
    Cited by 5

      (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.

      “to the extent that such loss is taken into account in computing taxable income.” Opening words
      Textual readingALL OF= a long-term capital loss
      “loss from the sale or exchange of a capital asset”
      “held for more than 1 year”
      “such loss is taken into account in computing taxable income”
      Amended 1976, 1984
      • 1984 Pub. L. 98-369 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 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(2), provided that “9 months” would be changed to “1 year”.
      • 1976 Pub. L. 94-455 Pub. L. 94–455, § 1402(a)(1), provided that “6 months” would be changed to “9 months” for taxable years beginning in 1977.
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        (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.

        Research 1
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          (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.

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            (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.

            Research 1
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              (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.

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                (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.

                Amended 1964, 1969, 1976
                • 1976 Pub. L. 94-455 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.
                • 1969 Pub. L. 91-172 Pub. L. 91–172, § 513(c), substituted “The” for “In the case of a corporation, the”.
                • 1964 Pub. L. 88-272 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).
                Research 1
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                  (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.

                  Amended 1964, 2010
                  • 2010 Pub. L. 111-325 Pub. L. 111–325 substituted “section 1212(a)(1)” for “section 1212”.
                  • 1964 Pub. L. 88-272 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).
                  Research 1
                  Cited by 3

                    (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.

                    Amended 1969, 1976
                    • 1976 Pub. L. 94-455 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.
                    • 1976 Pub. L. 94-455 Pub. L. 94–455, § 1402(d), inserted sentence at end relating to length of holding period in case of futures transactions in commodities.
                    • 1969 Pub. L. 91-172 Pub. L. 91–172, § 511(a), added par. (11).
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