Tax Tip of the Week
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Fax: 856.667.3652
Your investment expenses are deductible, within limits
For the week of
January 1, 2001
Investment expenses such as investment counseling, office
expenses, and management fees are deductible as miscellaneous itemized deductions. You are entitled to deduct investment
related travel costs, but not vacation expenses. Your travel expenses to see your accountant or your other advisors
on tax related matters are deductible. Your travel expenses to attend an investment seminar are not deductible,
even though you may see travel industry advertisements to the contrary.
Your total miscellaneous itemized deductions are limited to those expenses in excess of 2% of your adjusted gross
income (AGI).
For example: If your miscellaneous itemized deductions are $1,400 and your AGI is $60,000, your deduction will
be $200. (Your AGI of $60,000 times 2% equals $1,200. Only your expenses in excess of $1,200 are deductible.)
You can deduct your investment interest expense to the extent of your net investment income. Disallowed investment
interest expense can be carried over to a succeeding tax year.
If you would like assistance with your tax
planning or filing, please contact us. We are here to see that you pay no more tax than the law requires.
Click here to view previous tax tips.
"Tax Tips" are published weekly to
provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders,
and current tax information.
The information contained in this site is of a general nature and should not be acted upon in your specific situation
without further details and/or professional assistance.
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