A K-1 from an investor partnership reports foregn exchange losses (sect. 988) in Box 11A. They are being reported as "other income (loss)" on the taxpayer's 1040. How should they be treated, if at all, on form 4952 for the net investment interest expense deduction?
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But are the interest and capital gains investment income or trade or business income?
If it's a hedge fund they are probably business income-disclosed in the fine print attachments. Could be subject to NIIT.