### Question
What is the definition of nonrecaptured capital gains deductions?


### Answer
The definition of **nonrecaptured capital gains deductions** is as follows in *26 U.S.C. § 535*:

> the excess of—


(i) the aggregate amount allowable as a deduction under paragraph (6) for preceding taxable years beginning after July 18, 1984, over


(ii) the aggregate of the reductions under subparagraph (B) for preceding taxable years

#### Citation:
  - *26 U.S.C. § 535*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART I-CORPORATIONS IMPROPERLY ACCUMULATING SURPLUS**

