Question

All of the following statements are true exceptSelected Answer:Answers:investment interest expense includes interest expense to purchase or carry tax-exempt securities.net investment income is the taxpayer's investment income in excess of investment expenses.short-term capital gains meet the definition of net investment income.investment interest expense is deductible to the extent of a taxpayer's net investment income.

Answer 1

Answer: The answer is "investment interest expense includes interest expense to purchase or carry tax-exempt securities.".

Explanation: "investment interest expense includes interest expense to purchase or carry tax-exempt securities." IS FALSE.

Because the total interest expense per investment does not include the expenses paid to buy or carry tax-exempt securities because it is not appropriate to include them since these values are EXEMPT FROM TAXES.