### Question
What is the definition of section 1256 contract?


### Answer
The definition of **section 1256 contract** is as follows in *26 U.S.C. § 1212*:

> any section 1256 contract (as defined in section 1256(b)) to which section 1256 applies

#### Citation:
  - *26 U.S.C. § 1212*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART II-TREATMENT OF CAPITAL LOSSES**

