Which of the following is NOT included in investment income?

Investment income typically includes various forms of earnings generated from investment assets. The reason tax-exempt interest is not included in the definition of investment income is that it is specifically exempt from federal income tax, meaning it does not contribute to the taxable income of the individual.

Other options, such as capital gain net income, net rental income, and taxable dividends, are all forms of investment income that are subject to taxation. Capital gain net income arises from the sale of investments at a profit, net rental income is the income received from rental properties after expenses, and taxable dividends are distributions made to shareholders that are included in taxable income. Importantly, these sources of income require you to report them on your tax returns and they impact your overall tax liability, while tax-exempt interest does not.