I don't know if anyone can point me in the right direction but we are having an argument over the Capital Gains portion of an individual's tax return. I say on line #12 net gains or loss from partnerships, s corp, estates & trusts the income can not be added in to the debt service coverage. Another individual says yes it can. Does anyone know or can point me in the right direction?

Appendix Q

Capital Gains and Losses (from Schedule D)

Capital gains or losses generally occur only one time, and should not be considered when determining effective income.