### Question
How does the law define net adjustment?


### Answer
Under *26 U.S.C. § 772*, **net adjustment** is defined as:

> the net adjustment in the items attributable to passive loss activities or other activities (as the case may be) which would result if such items were determined with the adjustments of sections 56, 57, and 58

#### Citation:
  - *26 U.S.C. § 772*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART IV-SPECIAL RULES FOR ELECTING LARGE PARTNERSHIPS**

