### Question
How is the term late-year ordinary loss defined?


### Answer
The term **late-year ordinary loss** is defined in *26 U.S.C. § 852* as the following:

> the excess (if any) of—


(i) the sum of—


(I) the specified losses (as defined in section 4982(e)(5)(B)(ii)) attributable to the portion of the taxable year after October 31, plus


(II) the ordinary losses not described in subclause (I) attributable to the portion of the taxable year after December 31, over


  

(ii) the sum of—


(I) the specified gains (as defined in section 4982(e)(5)(B)(i)) attributable to the portion of the taxable year after October 31, plus


(II) the ordinary income not described in subclause (I) attributable to the portion of the taxable year after December 31

#### Citation:
  - *26 U.S.C. § 852*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART I-REGULATED INVESTMENT COMPANIES**

