26 U.S.C. § 64 — Ordinary income defined

submitted 50 years ago by Pub. L. 94-455 to r/title-26-INTERNAL-REVENUE-CODE · 78 words · no verdicts yet

in plain englishAI-generated · not legal advice

'Ordinary income' includes any gain from selling property that isn't a capital asset and isn't the kind of business property described in section 1231(b). If another part of this subtitle already treats a gain as 'ordinary income,' this section confirms it's treated the same way.

This section defines a tax term. 'Ordinary income' includes any gain from selling or exchanging property, as long as that property is neither a capital asset nor the kind of business property described in section 1231(b). It also has a coordinating rule: if some other part of this subtitle treats or considers a gain as 'ordinary income,' that gain is treated as gain from property that is neither a capital asset nor section 1231(b) property — even if it technically would have been one of those otherwise.

the actual law source: uscode.house.gov ↗public domain

For purposes of this subtitle, the term “ordinary income” includes any gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231(b). Any gain from the sale or exchange of property which is treated or considered, under other provisions of this subtitle, as “ordinary income” shall be treated as gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231(b).

Source credit: (Added Pub. L. 94–455, title XIX, § 1901(a)(10), Oct. 4, 1976, 90 Stat. 1765.)

history & why it existsrecord from the source credit

1976Enacted · Pub. L. 94-455 · 90 Stat. 1765

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-455 on 1976-10-04.

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