Basics Intermediate: Reporting Investment Income on Your Federal Tax Returns

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1.
Rental property is a form of supplemental income.
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True. Rental property is a form of supplemental income.
2.
If your investment company reports undistributed capital gains, you will receive IRS form 4952.
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False. If your investment company reports undistributed capital gains, you will receive form 2439.
3.
Dividends reinvested to buy more securities are not taxable as ordinary income.
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False. Dividends reinvested to buy more securities are taxable as ordinary income (except in the case of tax-sheltered accounts).
4.
If you traded stocks last year, you will receive IRS information return _______ to report them.
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1099-B. Form 1099-B is the form used for stock transactions.
5.
To determine which of your investment income is taxable, you would consult _______.
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Publication 550. Publication 550 describes income that is and is not subject to taxation.