---
kind: "section"
citation: "26 U.S.C. § 65"
title: "26"
title_heading: "Internal Revenue Code"
number: "65"
heading: "Ordinary loss defined"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/65"
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."
---

# §65. Ordinary loss defined


For purposes of this subtitle, the term “ordinary loss” includes any loss from the [sale or exchange](/usc/26/864.md?p=c-8-D) of [property](/usc/26/317.md?p=a) which is not a [capital asset](/usc/26/1221.md?p=a). Any loss 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 loss” shall be treated as loss from the [sale or exchange](/usc/26/864.md?p=c-8-D) of [property](/usc/26/317.md?p=a) which is not a [capital asset](/usc/26/1221.md?p=a).


## Source credit

(Added Pub. L. 94–455, title XIX, § 1901(a)(11), Oct. 4, 1976, 90 Stat. 1765.)