Investment Pubs

Today TaxMama hears from Tanya on the Internet, who wants to know, “Can I deduct the expenses related to newspapers or newsletters recommending stocks?”

Dear Tanya,

Typically, IRS will throw out deduction for your main dailies. While they may provide stock listings, they are just general newspapers.

On the other hand, if you’re subscribing to the Wall Street Journal, or the Kiplinger Report or other publications specifically related to investment and investing, then, you betcha!

Those deductions would go on Schedule A, the Itemized Deduction form, as Miscellaneous Deductions, subject to the 2% floor.

What does that mean? It means that before you can use the expenses, you first have to deduct 2% of your AGI. That’s your adjusted gross income, or the last line on page 1 of your tax return.

So, unless you have a lot of investment expenses, management fees, legal expenses or job related expenses – those deductions would generally be useless.

For instance, if your AGI were $50,000, you’d need to have more than $1,000 worth of Miscellaneous Expenses before you could deduct even one thin dime.

Of course, if you’re a full time trader, that’s a whole other story. And boy have I got a great article for you to read! http://www.taxmama.com/Articles-Pro/traders.html

And remember, you can find answers to all kinds of questions about investment expenses and all kinds of other tax issues, free. Where? Where else? At TaxMama.com

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