---
kind: "section"
citation: "26 U.S.C. § 64"
title: "26"
title_heading: "Internal Revenue Code"
number: "64"
heading: "Ordinary income defined"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/64"
units:
  - "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."
---

# §64. Ordinary income defined


For purposes of this subtitle, the term “ordinary income” includes any gain from the [sale or exchange](/usc/26/864.md?p=c-8-D) of [property](/usc/26/317.md?p=a) which is neither a [capital asset](/usc/26/1221.md?p=a) nor [property](/usc/26/317.md?p=a) described in [section 1231(b)](/usc/26/1231.md?p=b). Any gain from the [sale or exchange](/usc/26/864.md?p=c-8-D) of [property](/usc/26/317.md?p=a) which is treated or considered, under other provisions of this subtitle, as “ordinary income” shall be treated as gain from the [sale or exchange](/usc/26/864.md?p=c-8-D) of [property](/usc/26/317.md?p=a) which is neither a [capital asset](/usc/26/1221.md?p=a) nor [property](/usc/26/317.md?p=a) described in [section 1231(b)](/usc/26/1231.md?p=b).


## Source credit

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