### Question
How does the law define qualified capital gain?


### Answer
Under *26 U.S.C. § 1400B*, **qualified capital gain** is defined as:

> any gain recognized on the sale or exchange of—


(A) a capital asset, or


(B) property used in the trade or business (as defined in section 1231(b))

#### Citation:
  - *26 U.S.C. § 1400B*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter W-District of Columbia Enterprise Zone**

