### Question
What does net capital gain mean?


### Answer
**Net capital gain** has the following meaning in *26 U.S.C. § 1222*:

> the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year

#### 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**

