### Question
What is the definition of net investment income?


### Answer
The definition of **net investment income** is as follows in *26 U.S.C. § 527*:

> the excess of—



(A) the gross amount of income from interest, dividends, rents, and royalties, plus the excess (if any) of gains from the sale or exchange of assets over the losses from the sale or exchange of assets, over



(B) the deductions allowed by this chapter which are directly connected with the production of the income referred to in subparagraph (A)

#### Citation:
  - *26 U.S.C. § 527*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter F-Exempt Organizations > PART VI-POLITICAL ORGANIZATIONS**

