### Question
What is the definition of section 1202 gain?


### Answer
The definition of **section 1202 gain** is as follows in *26 U.S.C. § 1*:

> the excess of—


(A) the gain which would be excluded from gross income under section 1202 but for the percentage limitation in section 1202(a), over


(B) the gain excluded from gross income under section 1202

#### 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**

