### Question
Can you define what section 1202 gain means?


### Answer
**Section 1202 gain** is defined as the following in *26 U.S.C. § 1*:

> the excess of—


(A) the gain which would be excluded from gross income under section 1202 but for the percentage limitation in section 1202(a), over


(B) the gain excluded from gross income under section 1202

#### Citation:
  - *26 U.S.C. § 1*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART I-TAX ON INDIVIDUALS**

