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TITLE 26-INTERNAL REVENUE CODE to the extent that such loss is taken into ac- count in computing taxable income. (3) Long.term capital gain The term "long-term capital gain" means gain from the sale or exchange of a capital asset held for more than 9 months, if and to the extent such gain is taken into account in computing gross income. (4) Long-term capital loss The term "long-term capital loss" means loss from the sale or exchange of a capital asset held for more than 9 months, if and to the extent that such loss is taken into ac- count in computing taxable income. (5) Net short-term capital gain The term "net short-term capital gain" means the excess of short-term capital gains for the taxable year over the short-term cap- ital losses for such year. (6) Net short-term capital loss The term "net short-term capital loss" means the excess of short-term capital losses for the taxable year over the short-term cap- ital gains for such year. (7) Net long-term capital gain The term "net long-term capital gain" means the excess of long-term capital gains for the taxable year over the long-term cap- ital losses for such year. (8) Net long-term capital loss The term "net long-term capital loss" means the excess of long-term capital gains for such year. (9) Capital gain net income The term "capital gain net income" means the excess of the gains from sales or ex- changes of capital assets over the losses from such sales or exchanges. (10) Net capital loss The term "net capital loss" means the excess of the losses from sales or exchanges of capital assets over the sum allowed under section 1211. In the case of a corporation, for the purpose of determining losses under this paragraph, arrounts which are short-term capital losses under section 1212 shall be ex- cluded. (11) Net capital gain The term t'net capital gain" means the excess of thc, net long-term capital gain for the taxable year over the net short-term cap- ital loss for such year. For purposes of this subtitle, in the case of fu- tures transactions in any commodity subject to the rules of a board of trade or commodity ex- change, the length of the holding period taken into account under this section or under any other section amended by section 1402, of the Tax Reform Act of 1976 shall be determined without regard to the amendments made by subsections (a) and (b) of such section 1402. (Aug. 16, 1954, ch. 736, 68A Stat. 322; Feb. 26, 1964, Pub. L. 88-272, title II, § 230(b), 78 Stat. 100; Dec. 30, 1969, Pub. L. 91-172, title V, §§ 511(a), 513(c), 83 Stat. 635, 643; Oct. 4, 1976, Pub. L. 94-455, title XIV, § 1402(a)(1), (d), title XIX, § 1901(a)(136). 90 Stat. 1731, 1733, 1787.) TAXABLE YEARS AFTER 1977 Pars. (1) to (4) of this section amended by Pub. L. 94-455, title XIV, § 1402(a)(2), Oct. 4, 1976, 90 Stat. 1731, effective for taxable years beginning after Dec. 31, 1977, by sub- stituting "1 year"for "9 months". REFERENCES IN TEXT The Tax Reform Act of 1976, referred to in the last sentence, is Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520. For complete classification of this Act and of section 1402 of such Act to the Code, see Tables volume. AMEU DMENTS 1976-Pars. (1) to (4). Pub. L. 94-455, § 1402(a)(1), provided that "6 months" would be changed to "9 months" for "taxable years beginning in 1977." Par. (9). Pub. L. 94-455, § 1901(a)(136)(A), substitut- ed "Capital gain net income" and "capital gain net income" for "Net capital gain" and "net capital gain" in the heading and the text. Par. (11). Pub. L. 94-455, § 1402(d), added end sen- tence relating to the length of the holding period in the case of futures transactions in commodities. Pub. L. 94-455, § 1901(a)(136)(B), substituted "Net capital gain" and "net capital gain" for "Net section 1201 gain" and "net section 1201 gain" in the heading and the text. 1969-Par. (9). Pub. L. 91-172, § 513(c), substituted "The" for "In the case of a corporation, the". Par. (11). Pub. L. 91-172, § 511(a), added par. (11). 1964-Pars. (9), (10). Pub. L. 88-272 eliminated provi- sions from par. (9) relating to taxpayers other than corporations, and inserted "In the case of a corpora- tion" in par. (10). EFFECTIVE DATE OF 1976 AMENDMENT Section 1402(a)(1) of Pub. L. 94-455 provided in part that the substitution of "9 months" for "6 months" in pars. (1) to (4) of this section by section 1402(a)(1) of Pub. L. 94-455 is effective with respect to taxable years beginning in 1977. Amendment of pars. (9) and (11) by section 1901(a)(136) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see sec. tion 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFCTIVE DATE OF 1969 AMNMNrr Amendment by section 513(c) of Pub. L. 91-172 ap- plicable to taxable years beginning after Dec. 31. 1969, see section 513(d) of Pub. L. 91-172, set out as an Ef- fective Date of 1969 Amendment note under section 1211 of this title. EFFECTIVE DATE 0 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to taxable years beginning after Dec. 31, 1963, see section 230(c) of Pub. L. 88-272, set out as an Effective Date of 1964 Amendment note under section 1212 of this title. CRoss REFERENCES Amount of deduction for net capital gains, see sec- tion 1202 of this title. Gains derived from dealings in property as gross income, see section 61 of this title. Limitation of capital losses, see section 1211 of this title. Losses by corporations and individuals deductible from gross income, see section 165 of this title. Rate of income tax on individuals, see section 1 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 265 of this title. Page 680 § 1222