Main Pot

noun

: a step in calculating tax liability under Internal Revenue Code section 1231 in which all qualified transactions are netted to determine if the result is a loss or gain

called also Big Pot, Hodge Podge, hotchpot

compare casualty pot

Note: The transactions netted in the Main Pot are as follows: casualties in the Casualty Pot if they have netted a gain; sales, exchanges, or condemnations of depreciable or real property used in a business for more than one year; and condemnations of capital assets held for more than one year in connection with a trade or business or transaction entered into for profit. If the net result is a gain, then the transactions are treated as long-term capital gains and losses.

Dictionary Entries Near Main Pot

Cite this Entry

“Main Pot.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/Main%20Pot. Accessed 5 Nov. 2024.

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