Steve and Stella are having a debate regarding the the election to include preferentially taxed capital gains and qualified dividends in investment income. Steve states that this election allows the taxpayer to deduct more investment interest expense currently if they are willing to subject this income to ordinary tax rates. Stella asserts that this election is available only for capital gains and not qualified dividends. Which statement is correct?

- Steve

- Stella

- Neither is correct

Answer rating: 100% (QA)

In this scenario Steve is correct Explanation Steve is correct here because cap... View the full answer