### Question
How does the law define net capital gain?


### Answer
Under *26 U.S.C. § 1*, **net capital gain** is defined as:

> net capital gain (determined without regard to this paragraph) increased by qualified dividend income

#### 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**

