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taxmap/pubs/p550-000.htm#en_us_publink10009812
Publication 550

 
Investment 
Income and 
Expenses

rule

(Including Capital
Gains and Losses)

Future Developments(p1)


For the latest information about developments related to Pub. 550, such as legislation enacted after it was published, go to www.irs.gov/pub550.

What's New(p2)


taxmap/pubs/p550-000.htm#en_us_publink1000309992
Form 1099-INT.(p2)
A new box 13 has been added to Form 1099-INT to report bond premium on tax-exempt bonds. All later boxes were renumbered. For a tax-exempt covered security acquired at a premium, box 13 shows the amount of bond premium amortization allocable to the interest paid during the tax year. If a net amount of interest appears in box 8 or 9, whichever is applicable, box 13 should be blank.

Reminders(p2)


taxmap/pubs/p550-000.htm#en_us_publink100027758
Net investment income tax (NIIT).(p2)
Beginning in 2013, you may be subject to the NIIT. The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates, and trusts that have income above statutory threshold amounts. See Net investment income tax (NIIT), later.
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Mutual fund distributions.(p2)
Pub. 564, Mutual Fund Distributions, has been incorporated into this publication.
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Foreign source income.(p2)
If you are a U.S. citizen with investment income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt by U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form 1099 from the foreign payer.
taxmap/pubs/p550-000.htm#en_us_publink1000222045
Employee stock options.(p2)
If you received an option to buy or sell stock or other property as payment for your services, see Pub. 525, Taxable and Nontaxable Income, for the special tax rules that apply.
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Photographs of missing children.(p2)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

taxmap/pubs/p550-000.htm#en_us_publink1000270160Introduction

This publication provides information on the tax treatment of investment income and expenses. It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds. It explains what investment income is taxable and what investment expenses are deductible. It explains when and how to show these items on your tax return. It also explains how to determine and report gains and losses on the disposition of investment property and provides information on property trades and tax shelters.
Deposit
The glossary at the end of this publication defines many of the terms used.
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Investment income.(p2)

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This generally includes interest, dividends, capital gains, and other types of distributions including mutual fund distributions.
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Investment expenses.(p2)

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These include interest paid or incurred to acquire investment property and expenses to manage or collect income from investment property.
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Qualified retirement plans and IRAs.(p2)

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The rules in this publication do not apply to investments held in individual retirement arrangements (IRAs), section 401(k) plans, and other qualified retirement plans. The tax rules that apply to retirement plan distributions are explained in the following publications.
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Comments and suggestions.(p2)

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We welcome your comments about this publication and your suggestions for future editions.
You can send us comments from www.irs.gov/formspubs. Click on "More Information" and then on "Give us feedback."
Or you can write to:

Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224


We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.
Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products.
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Ordering forms and publications.(p2)
Visit www.irs.gov/formspubs to download forms and publications. Otherwise, you can go to www.irs.gov/orderforms to order current and prior-year forms and instructions. Your order should arrive within 10 business days.
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Tax questions.(p2)
If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help at the end of this publication.