Can I deduct investment-related expenses on my taxes?
Curious about Taxes Investment
Yes, some investmentrelated expenses may be deductible on your taxes, but the rules can be complex and vary depending on the type of investment and your specific situation. Here are a few examples:
1. Investment interest expenses: If you borrow money to invest, the interest you pay on the loan may be deductible as investment interest expense, up to the amount of your net investment income.
2. Advisory fees and other investment expenses: If you pay fees to a financial advisor or other professionals for investment advice, research, or other services, these expenses may be deductible as miscellaneous itemized deductions on Schedule A, subject to certain limitations. However, the Tax Cuts and Jobs Act of 2017 has suspended this deduction for tax years 20182025.
3. Capital losses: If you sell an investment for less than you paid for it, you may be able to use the capital loss to offset capital gains from other investments, or to deduct up to $3,000 of the loss against your ordinary income. Any unused capital losses can be carried forward to future years.
It's important to consult with a tax professional to determine which expenses are deductible and how they can affect your tax situation.