All of the following statements are true exceptselected answers: investment interest expense includes interest expense to purchase or carry tax-exempt securities. net investment income is the taxpayer's investment income in excess of investment expenses. short-term capital gains meet the definition of net investment income. investment interest expense is deductible to the extent of a taxpayer's net investment income.

The answer is "investment interest expense includes interest expense to purchase or carry tax-exempt securities.".

Explanation: "investment interest expense includes interest expense to purchase or carry tax-exempt securities." IS FALSE.

Because the total interest expense per investment does not include the expenses paid to buy or carry tax-exempt securities because it is not appropriate to include them since these values are EXEMPT FROM TAXES.

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