Instructions for Form 4952 lines 1 and 5

[J.P.]

Instructions for Form 4952 lines 1 and 5

Line 1 of the instructions refers to the term "property held for investment." This includes interest and dividends but not stocks; is that correct?

Line 5 of the instructions refers to the term "investment expenses." This, however, does include stocks; is that correct?

Publication 550 does not clarify this.

Thank you.

 

[J.P.]

"Line 1" above should have read "Line 4a" (the first line under Part II of Form 4952). Sorry about that. Anyway, upon further research it appears to be true that, generally, Line 4a's "gross income from property held for investment" does not include stocks but Line 5's "investment expenses" does.