### Question
How is the term net section 1231 gain defined?


### Answer
The term **net section 1231 gain** is defined in *26 U.S.C. § 1231* as the following:

> the excess of—


(A) the section 1231 gains, over


(B) the section 1231 losses

#### Citation:
  - *26 U.S.C. § 1231*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

