Upon completing this chapter, you should be able to:
LO 11-1
Explain how interest income and dividend income are taxed.
LO 11-2
Compute the tax consequences associated with the
disposition of capital assets, including the netting process for
calculating gains and losses.
LO 11-3
Describe common sources of tax-exempt investment income
and explain the rationale for exempting some investments
from taxation.
LO 11-4
Calculate the deduction for portfolio investment-related
expenses, including investment expenses and investment
interest expense.
LO 11-5
Understand the distinction between portfolio investments
and passive investments and apply tax basis, at-risk, and
passive activity loss limits to losses from passive investments.
