1. All of thew following are considered investment income for the purpose of calculating deductable investment expenses, EXCEPT
Royalty income.
Tax-Exempt income.
Original issue discount.
Ordinary dividend income.
2. In which case will the taxpayer be able to exclude all income from their cancelled debt? The taxpayer:
Received a Form 1099-C with $17,400 in box 2 and $15,700 in box 7, and they were insolvent by $15,800.
Had a debt of $5,400 cancelled. Immediately prior to the debt, they were insolvent by $2,750
Had $11,500 of debt cancelled. Immediately prior to the cancellation, they were insolvent by $12,000
Had a debt of $7,850 cancelled. Immediately prior to the debt, they were insolvent by $6,500