Page:United States Statutes at Large Volume 53 Part 1.djvu/63

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INCOME TAX 51 (3) SHORT-TEEM CAPITAL Loss.- The term "short-term capital loss" means loss from the sale or exchange of a capital asset held for not more than 18 months, if and to the extent such loss is taken into account in computing net income; (4) 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 18 months, if and to the extent such gain is taken into account in computing net income; (5) 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 18 months, if and to the extent such loss is taken into account in computing net income; (6) 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 sum of (A) short-term capital losses for the taxable year, plus (B) the net short-term capital loss of the pre- ceding taxable year (if beginning after December 31, 1937), to the extent brought forward to the taxable year under subsection (e); (7) 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 capital gains for such year; (8) 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 capital losses for such year; (9) NET LONG-TERM CAPITAL LOsS.- T he term "net long-term capital loss" means the excess of long-term capital losses for the taxable year over the long-term capital gains for such year. (b) PERCENTAGE TAKEN INTO ACCOImNT. -In the case of a taxpayer, other than a corporation, only the following percentages of the gain or loss recognized upon the sale or exchange of a capital asset shall be taken into account in computing net income: 100 per centum if the capital asset has been held for not more than 18 months; 662/ per centum if the capital asset has been held for more than 18 months but not for more than 24 months; 50 per centum if the capital asset has been held for more than 24 months. (c) ALTERNATIVE TAXES. - (1) IN CASE OF NET LONG-TERM CAPITAL GAIN.-If for any tax- able year a taxpayer (other than a corporation) derives a net long-term capital gain, there shall be levied, collected, and paid, in lieu of the tax imposed by sections 11 and 12, a tax determined as follows, if and only if such tax is less than the tax imposed by such sections: A partial tax shall first be computed upon the net income reduced by the amount of the net long-term capital gain, at the rates and in the manner as if this subsection had not been enacted, and the total tax shall be the partial tax plus 30 per centum of the net long-term capital gain. (2) IN CASE OF NET LONG-TERM CAPITAL LOSS.- If for any taxable year a taxpayer (other than a corporation) sustains a net long- term capital loss, there shall be levied, collected, and paid, in lieu of the tax imposed by sections 11 and 12, a tax determined as follows, if and only if such tax is greater than the tax imposed by such sections: A partial tax shall first be computed upon the net income increased by the amount of the net long-term capital loss, at the rates and in the manner as if this subsection had not been enacted, and the total tax shall be the partial tax minus 30 per centum of the net long-term capital loss.