### Question
What does net capital loss mean?


### Answer
**Net capital loss** has the following meaning in *26 U.S.C. § 772*:

> the excess of the losses from sales or exchanges of capital assets over the gains from sales or exchange of capital assets

#### Citation:
  - *26 U.S.C. § 772*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter K-Partners and Partnerships > PART IV-SPECIAL RULES FOR ELECTING LARGE PARTNERSHIPS**

