Ordinary Loss Law and Legal Definition
According to 26 USCS § 65 [Title 26. Internal Revenue Code; 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.], the term "ordinary loss" includes any loss from the sale or exchange of property which is not a capital asset. Any loss from the sale or exchange of property which is treated or considered, under other provisions of this subtitle [26 USCS §§ 1 et seq.], as "ordinary loss" shall be treated as loss from the sale or exchange of property which is not a capital asset.
