In general
There shall not be taken into account—
(i) any— (I) gross income from interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business, (II) expenses (other than interest) which are clearly and directly allocable to such gross income, and (III) interest expense properly allocable to such gross income, and
(ii) gain or loss not derived in the ordinary course of a trade or business which is attributable to the disposition of property— (I) producing income of a type described in clause (i), or (II) held for investment.
For purposes of clause (ii), any interest in a passive activity shall not be treated as property held for investment.
(i)#
any—
(I) gross income from interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business,
(II) expenses (other than interest) which are clearly and directly allocable to such gross income, and
(III) interest expense properly allocable to such gross income, and
(i)(I)#
gross income from interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business,
(i)(II)#
expenses (other than interest) which are clearly and directly allocable to such gross income, and
(i)(III)#
interest expense properly allocable to such gross income, and
(ii)#
gain or loss not derived in the ordinary course of a trade or business which is attributable to the disposition of property—
(I) producing income of a type described in clause (i), or
(II) held for investment.
(ii)(I)#
producing income of a type described in clause (i), or
(ii)(II)#
held for investment.