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TITLE 26-INTERNAL REVENUE CODE '(2) not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for the first taxable year beginning after December 31, 1969, in which such corporation sus- tains a net capital loss. "(c) The Secretary of the Treasury or his delegate shall prescribe such regulations as he determines nec- essary to carry out the purposes of this section." CRoss REFRENCES Accumulated taxable income of corporations im- properly accumulating surplus, see section 535 of this title. Adjustments required by changes in method of ac- counting, see section 481 of this title. Ascertainment of amount of adjustment, see section 1314 of this title. Capital loss carryovers of estates or trusts, see sec- tion 642 of this title. Capital losses of nonresident alien not subject to this section, see section 871 of this title. Net capital loss computed without regard to this sec- tion, see section 1222 of this title. SECTION REFERIU TO IN OTIER SECTIONS This section is referred to in sections 165, 170. 246, 381, 383, 481. 514, 535, 613A, 642, 822, 832, 871, 877, 904, 1222, 1247, 1314, 1341, 1351, 6411 of this title. PART III-GENERAL RULES FOR DETER- MINING CAPITAL GAINS AND LOSSES Sec. 1221. Capital asset defined. 1222. Other items relating to capital gains and losses. 1223. Holding period of property. § 1221. Capital asset defined For purposes of this subtitle, the term "cap- ital asset" means property held by the taxpayer (whether or not connected with his trade or business), but does not include- (1) stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business; (2) property, used in his trade or business, of a character which Is subject to the allowance for depreciation provided in section 167, or real property used in his trade or busi- ness; (3) a copyright, a literary, musical, or artis- tic composition, a letter or memorandum, or similar property, held by- (A) a taxpayer whose personal efforts cre- ated such property, (B) in the case of a letter, memorandum, or similar property, a taxpayer for whom such property was prepared or produced, or (C) a taxpayer in whose hands the basis of such property is determined, for pur- poses of determining gain from a sale or ex- change, in whole or part by reference to the basis of such property in the hands of a tax- payer described in subparagraph (A) or (B); (4) accounts or notes receivable acquired in the ordinary course of trade or business for services rendered or from the sale of property described in paragraph (1); or (5) an obligation of the United States or any of its possessions, or of a State, or any po- litical subdivision thereof, or of the District of Columbia, issued on or after March 1, 1941, on a discount basis and payable without inter- est at a fixed maturity date not exceeding one year from the date of issue; or (6) a publication of the United States Gov- ernment (including the Congressional Record) which is received from the United States Government or any agency thereof, other than by purchase at the price at which it is offered for sale to the public, and which is held by- (A) a taxpayer who so received such publi- cation, or (B) a taxpayer in whose hands the basis of such publication is determined, for pur- poses of determining gain from a sale or ex- change, in whole or in part by reference to the basis of such publication in the hands of a taxpayer described in subparagraph (A). (Aug. 16, 1954, ch. 736, 68A Stat. 321; Dec. 30, 1969, Pub. L. 91-172, title V, § 514(a), 83 Stat. 643; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(c)(9), title XXI, § 2132(a), 90 Stat. 1803, 1925.) AMENDMENTS 1976-Par. (5). Pub. L. 94-455, § 1901(c)(9), struck out "or Territory," following "State". Par. (6). Pub. L. 94-455, § 2132(a), added par. (6). 1969-Par. (3). Pub. L. 91-172 added reference to a letter or memorandum, added subpar. (B) dealing with a letter or memorandum, and redesignated former subpar. (B) as subpar. (C). EFFECTIVE DATE OF 1976 AMENDMENT Section 2132(b) of Pub. L. 94-455 provided that: "The amendment made -by subsection (a) [enacting par. (6) of this section] shall apply to sales, exchanges, and contributions made after the date df enactment of this Act [Oct. 4, 1976]." E c'vET DATE OF 1969 AErNmENr Section 514(c) of Pub. L. 91-172 provided that: "The amendments made by this section [amending this sec- tion and sections 341 and 1231 of this title] shall apply to sales and other dispositions occurring after July 25, 1969." CROSS REFERENCES Gross income defined, see section 61 of this title. Inventory items of partnership as including stock in trade of taxpayer, see section 751 of this title. Sale or exchange of residence as nontaxable, see sec- tion 1034 of this title. SECTION REFEREIU TO IN OTHER SECTIONS This section is referred to in sections 170, 189, 341, 595, 707, 751, 817, 857, 864, 995, 1223, 1231, 1234, 1248 of this title. § 1222. Other terms relating to capital gains and losses For purposes of this subtitle- (1) Short-term capital gain The term "short-term capital gain" means gain from the sale or exchange of a capital asset held for not more than 9 months, if and to the extent such gain is taken into account in computing gross income. (2) Short-term capital loss The term "short-term capital loss" means loss from the sale or exchange of a capital asset held for not more than 9 months, if and Page 679 § 1222