Unless you’re subject to the alternative minimum tax (AMT), miscellaneous itemized deductions in excess of 2% of your adjusted gross income (AGI) can be deducted. Along with tax preparation fees, investment expenses fall into this category. Deductible investment expenses include:
* Depreciation on a home computer to the extent used for investments;
* The cost of computer software and online services used to track your investments;
* Legal, accounting, or advisory fees related to your investments;
* Travel expenses–such as trips to visit your broker or financial advisor–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 that provide you with investment advice; and
* Purchase price of books related to your investments.
If your AGI was $80,000 last year, for example, miscellaneous expenses over $1,600 (2% of $80,000) are deductible. Adding up all your investment expenses can put you into tax-deductible territory.
