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


### Answer
Under *26 U.S.C. § 4982*, **net capital gain** is defined as:

> given such term by section 1222(11) (determined by treating the 1-year period ending on October 31 of the calendar year as the company's taxable year).

#### Citation:
  - *26 U.S.C. § 4982*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 44-QUALIFIED INVESTMENT ENTITIES**

