### Question
Can you define what investment income means?


### Answer
**Investment income** is defined as the following in *26 U.S.C. § 163*:

> the sum of—



(i) gross income from property held for investment (other than any gain taken into account under clause (ii)(I)),



(ii) the excess (if any) of—



(I) the net gain attributable to the disposition of property held for investment, over



(II) the net capital gain determined by only taking into account gains and losses from dispositions of property held for investment, plus


  


(iii) so much of the net capital gain referred to in clause (ii)(II) (or, if lesser, the net gain referred to in clause (ii)(I)) as the taxpayer elects to take into account under this clause

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

