While the next tax filing season is many months away, it can pay you to review potential itemized deductions that will trim your taxes now. Miscellaneous deductions in excess of 2% of your adjusted gross income can be deducted. Investment expenses that fall into this category include:
- depreciation on a home computer to the extent used for investments;
- cost of computer software and on-line services used to track your investments;
legal, accounting or advisory fees related to your investments;
- service charges on dividend reinvestment plans;
- rent on a safe deposit box used to store income-producing securities and related documents;
- IRA trustees’ fees, if billed and paid separately;
- subscriptions to publications you rely upon for investment advice;
- purchase price of books related to your investments; and,
travel expenses — such as trips to visit your broker or financial planner — related to your investments.