### Question
How does Capital Gains and Losses define capital gain net income?


### Answer
Under *26 U.S.C. § 1222*, **capital gain net income** is defined as:

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

#### 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**

