### Question
How is the term adjusted taxable income defined?


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

> 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**

