Dividends taxed as ordinary income are considered investment income for purposes of the investment interest expense limitation.

Name: Dividends taxed as ordinary income are considered investment income for purposes of the investment interest expense limitation.
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Quizplus · Accepted Answer

Dividends taxed as ordinary income can be considered investment income, which is relevant when calculating the investment interest expense limitation, allowing taxpayers to deduct interest expenses incurred to produce taxable investment income.

Dividends Taxed as Ordinary Income Are Considered Investment Income for Purposes