### Question
How is the "net capital loss" defined?


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

> the excess of the losses from sales or exchanges of capital assets over the sum allowed under section 1211

#### 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**

