Lynn paid $12,000 of investment interest expense in a year in which she has the following investment income $3,000 taxable dividend income, $4,000 taxable interest income, $1,000 from a short term capital gain, and $4,000 from a long term capital gain Explain the election Lynn should make to maximi...

Investment income does not include net longterm capital gains from the sal ...

Lynn paid $12,000 of investment interest expense in a year in which she has the following investment

Question:

Lynn paid $12,000 of investment interest expense in a year in which she has the following investment income: $3,000 taxable income, $4,000 taxable interest income, $1,000 from a short-term capital gain, and $4,000 from a long-term capital gain. Explain the election Lynn should make to maximize her deduction for her investment interest expense this year.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...