The investment loss deduction is calculated as follows, in accordance with IRS Bulletin 2009-14 and Revenue procedure 2009-20 (see Appendix A): the original investmentplusincome reported in prior years minus distributions received in prior years.
Under their proposal even top bracket taxpayers would pay a maximum rate on this investmentincome of 20 percent in 2013 (plus an additional 3.8 percent under the tax provisions of the 2010 health law).