Article 69Aggregation of Profits and Losses

①When gross income, retirement income, or timber income is calculated, if real property income, business income, timber income, or capital gains are calculated to be a loss, that loss is offset against other Income in Each Class, in the order prescribed by Cabinet Order.

②In the case referred to in the preceding paragraph, if part of the loss prescribed in that paragraph is a loss that arises when the amount of income from assets as prescribed in Article 62, paragraph (1) (Loss of Assets Not Ordinarily Necessary in Everyday Life, Due to Disaster) is calculated (hereinafter such an amount of income is referred to as "income from assets not ordinarily necessary in everyday life" in this paragraph), the part of that loss that Cabinet Order prescribes is to be offset against other income from assets not ordinarily necessary in everyday life pursuant to Cabinet Order, and any part of that loss other than what Cabinet Order prescribes as well as any amount that is not fully offset is deemed to have never existed.