Miscellaneous itemized deductions are deductible to the extent they exceed 2 percent of your adjusted gross income (AGI). Some people neglect to take this deduction because they overlook these investment-related outlays:
* Travel expenses. Trips to visit your financial consultant or investment advisor or broker are deductible at 44.5 cents per auto mile for 2006, along with your costs of tolls and parking.
If you own investment real estate at a distance from where you live, inspection trips might be deductible. Keep records to show that you met with contractors who’ll perform repairs, the agent who screens tenants, and so on.
(The costs of traveling to or attending investment seminars aren’t deductible, though.)
* Legal, accounting, or advisory fees related to your investments. If you met with your accountant to discuss financial planning, for example, ask for an itemized bill showing how much of the fee involved advice related to your investment portfolio.
* Phone bills. If you use up 50 percent of your cell phone minutes calling your broker, half of those charges can fall into this category, increasing your chances of getting a deduction.
Now for the bad news: if you’re subject to the alternative minimum tax (AMT), you won’t be able to take any miscellaneous itemized deductions.