### Question
How does Regulated Investment Companies and Real Estate Investment Trusts define late-year ordinary loss?


### Answer
Under *26 U.S.C. § 852*, **late-year ordinary loss** is defined as:

> the excess (if any) of—


(i) the sum of—


(I) the specified losses (as defined in section 4982(e)(5)(B)(ii)) attributable to the portion of the taxable year after October 31, plus


(II) the ordinary losses not described in subclause (I) attributable to the portion of the taxable year after December 31, over


  

(ii) the sum of—


(I) the specified gains (as defined in section 4982(e)(5)(B)(i)) attributable to the portion of the taxable year after October 31, plus


(II) the ordinary income not described in subclause (I) attributable to the portion of the taxable year after December 31

#### Citation:
  - *26 U.S.C. § 852*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART I-REGULATED INVESTMENT COMPANIES**

