### Question
Can you define what adjusted taxable income means?


### Answer
**Adjusted taxable income** is defined as the following in *26 U.S.C. § 1212*:

> taxable income increased by the sum of—


(i) the amount allowed for the taxable year under paragraph (1) or (2) of section 1211(b), and


(ii) the deduction allowed for such year under section 151 or any deduction in lieu thereof

#### Citation:
  - *26 U.S.C. § 1212*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART II-TREATMENT OF CAPITAL LOSSES**

