nonrecaptured capital gains deductions

(5) Capital losses (A) In general Except as provided in subparagraph (B), there shall be allowed as a deduction an amount equal to the net capital loss for the taxable year (determined without regard to paragraph (7)(A)). (B) Recapture of previous deductions for capital gains The aggregate amount allowable as a deduction under subparagraph (A) for any taxable year shall be reduced by the lesser of— (i) the nonrecaptured capital gains deductions, or (ii) the amount of the accumulated earnings and profits of the corporation as of the close of the preceding taxable year. (C) Nonrecaptured capital gains deductions For purposes of subparagraph (B), the term “nonrecaptured capital gains deductions” means the excess of— (i) the aggregate amount allowable as a deduction under paragraph (6) for preceding taxable years beginning after July 18, 1984 , over (ii) the aggregate of the reductions under subparagraph (B) for preceding taxable years.


26 USC § 535(b)(5)

Scoping language

None identified, default scope is assumed to be the parent (part I) of this section.
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