### Question
How is the term specified liability loss defined?


### Answer
The term **specified liability loss** is defined in *26 U.S.C. § 172* as the following:

> the sum of the following amounts to the extent taken into account in computing the net operating loss for the taxable year:


(A) Any amount allowable as a deduction under section 162 or 165 which is attributable to—


(i) product liability, or


(ii) expenses incurred in the investigation or settlement of, or opposition to, claims against the taxpayer on account of product liability

#### Citation:
  - *26 U.S.C. § 172*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

