### Question
What is the definition of net income derived from prohibited transactions?


### Answer
The definition of **net income derived from prohibited transactions** is as follows in *26 U.S.C. § 857*:

> the excess of the gain from prohibited transactions over the deductions allowed by this chapter which are directly connected with prohibited transactions

#### Citation:
  - *26 U.S.C. § 857*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART II-REAL ESTATE INVESTMENT TRUSTS**

