For those of you that have investments -- be it mutual funds, stocks, or bonds -- there are expenses that go along with them. In certain cases some of those investment expenses are tax deductible, but unfortunately many investors don't realize this and fail to take advantage of such deductions. It's important to know which investment expenses are tax deductible.
Some of the common tax deductible investment expenses:
Various costs for investment counseling and money you spend on advice including subscriptions to financial publications.
Legal fees including attorneys, accountants, or other clerical fees that are needed to obtain income.
Money spent on online services or software that you use to manage your investments.
IRA or Keogh custodial fees that are paid by cash outside of the account.
The cost of the safe deposit box used to store stock certificates and other investment papers.
Transportation cost of travel to and from your investment adviser's or broker's office.
Various charges for investment services and reinvestment plans.
The cost to replace lost security certificates.
What are not tax deductible investment expenses:
Broker's fees that are paid for assistance in buying securities and commission fees.
Money spent on travel to and from shareholders' meetings, seminars, or conventions.
Borrowing costs associated with life insurance policies.
In general, it is always good practice to consult your tax preparation agent and your investment adviser to make sure which investment related expenses will be tax deductible. Each situation will vary, so what can or cannot be deducted during tax preparation will depend somewhat on each person.
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