### Question
How is the "short-term capital loss" defined?


### Answer
The term **short-term capital loss** is defined in *26 U.S.C. § 1222* as follows -

> loss from the sale or exchange of a capital asset held for not more than 1 year, if and to the extent that such loss is taken into account in computing taxable income

#### Citation:
  - *26 U.S.C. § 1222*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART III-GENERAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

