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!