### Question
How does the law define mid-term gain?


### Answer
Under *26 U.S.C. § 1*, **mid-term gain** is defined as:

> the amount which would be adjusted net capital gain for the taxable year if—


(A) adjusted net capital gain were determined by taking into account only the gain or loss properly taken into account after July 28, 1997, from property held for more than 1 year but not more than 18 months, and


(B) paragraph (3) and section 1212 did not apply

#### Citation:
  - *26 U.S.C. § 1*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART I-TAX ON INDIVIDUALS**

