Investment income vs Capital gain question

  • Creator
    Topic
  • February 18, 2013 at 8:03 pm #176202
    General_Ledger
    Participant

    This is a stupid question. Please correct me if I am wrong.

    Question 1

    Investment income are rent, dividend, interest, royalties, etc BUT it does not include Capital gain, correct?

    Question 2

    Your investment interest expense can only be deducted from the net investment income (rent, div, interest). It CANNOT be deducted from your capital gain, correct?

    Question 3

    Capital gain is whatever captial asset that you sold ( your Cap. asset FMV > basis) that generated a gain. right?

    Coming from a finance background, they all sound really similiar to me. I am trying to get them straighten out.

    Thank you for your help!

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