### Question
How does Capital Gains and Losses define renewal period?


### Answer
Under *26 U.S.C. § 1250*, **renewal period** is defined as:

> any period for which the lease may be renewed, extended, or continued pursuant to an option exercisable by the lessee, but



(B) the inclusion of renewal periods shall not extend the period taken into account by more than 2/3 of the period on the basis of which the depreciation adjustments were allowed

#### Citation:
  - *26 U.S.C. § 1250*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

