Question

phuong has the following sources of investment income: money market account interest $2,000 interest on state of new york bond 1,000 dividends from domestic stocks 3,000 long-term capital gain 4,000 short-term capital gain 5,000 barring any special elections, how much of the investment income will be included in calculating net investment income for purposes of the investment interest expense limitation?

Answer 1

The investment income included will be $2,000 from money market account interest, $1,000 from interest on New York bond, $3,000 from dividends on domestic stocks, $4,000 from long-term capital gain, and $5,000 from short-term capital gain.

Step-by-step explanation:

The investment income that will be included in calculating net investment income for purposes of the investment interest expense limitation includes:

• Money market account interest: $2,000
• Interest on state of New York bond: $1,000
• Dividends from domestic stocks: $3,000
• Long-term capital gain: $4,000
• Short-term capital gain: $5,000