- 9 -
the income tax as applied to net capital gains (see sec.
61(a)(3)), such that the marginal tax rates on net capital gains
ordinarily are less than the marginal tax rates on other types of
income. More recently, section 1(h)(11) has provided similar
beneficial treatment to “qualified dividend income”. See sec.
61(a)(7).
Section 1655 provides generally for the treatment of losses
5 Section 165 provides in pertinent part as follows:
SEC. 165. LOSSES.
(a) General Rule.--There shall be
allowed as a deduction any loss
sustained during the taxable year
and not compensated for by
insurance or otherwise.
* * * * * * *
(c) Limitation on Losses of
Individuals.--In the case of an
individual, the deduction under
subsection (a) shall be limited
to--
(1) losses incurred in a
trade or business;
(2) losses incurred in
any transaction entered into
for profit, though not
connected with a trade or
business; and
* * * * * * *
(f) Capital Losses.--Losses from
sales or exchanges of capital
assets shall be allowed only to the
extent allowed in sections 1211 and
1212.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011