Title 26, Internal Revenue CodeRelease 119-102
§65 Ordinary Loss Defined
Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter B — Computation of Taxable Income › PART I — DEFINITION OF GROSS INCOME, ADJUSTED GROSS INCOME, TAXABLE INCOME, ETC. › § 65
Summary
Treats losses from selling or trading property that aren't capital assets as "ordinary losses."
Full Legal Text
Title 26, §65
Internal Revenue Code, Source: USLM XML via OLRC
For purposes of this subtitle, the term “ordinary loss” includes any loss from the sale or exchange of property which is not a capital asset. Any loss from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as “ordinary loss” shall be treated as loss from the sale or exchange of property which is not a capital asset.
Reference
Citations & Metadata
Citation
26 U.S.C. § 65
Title 26, Internal Revenue Code
Last Updated
Aug 21, 2026
Release point: 119-102