### Question
What is the definition of ordinary earnings?


### Answer
The definition of **ordinary earnings** is as follows in *26 U.S.C. § 1293*:

> the excess of the earnings and profits of the qualified electing fund for the taxable year over its net capital gain for such taxable year

#### Citation:
  - *26 U.S.C. § 1293*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART VI-TREATMENT OF CERTAIN PASSIVE FOREIGN INVESTMENT COMPANIES > Subpart B-Treatment of Qualified Electing Funds**

