top of page


New Investment

Bought Collectibles

You may take deductions for certain expenses you incur in the production of taxable investment income such as management fees, advisory fees, custodial fees, and investment periodicals. Qualified investment expenses are deductible on Schedule A to the extent that they exceed your investment.

Bought Rental Property

As a landlord you will have income and expenses. Rental income includes payments made by an occupant for the use of property, payments to cancel a lease, advance rent, and any security deposit used as a final payment of rent. Some of your expenses, such as rent lost due to a vacancy, are not deductible. Improvements made to the property must be depreciated over a prescribed number of years and cannot be deducted all at once.

Received Dividends

If your Form 1099-INT or Form 1099-DIV shows you paid foreign taxes, you may be eligible to claim either a credit or an itemized deduction for these taxes. Generally, the foreign tax credit results in a greater tax savings than deducting the foreign taxes as an itemized deduction.

Sold Partnership Interest

When you sell your interest in a Partnership any prior year unallowed losses are allowed in the year you sell your interest. Your K-1 should have the Final K-1 box selected.

New Investment

Debt Forgiven

Had Debt Forgiven

The tax impact of debt forgiveness and cancellation depends on your individual facts and circumstances. Generally, if you borrow money and the lender later forgives the debt, you may have to include the cancelled amount in income for tax purposes. The lender usually is required to report the amount of the cancelled debt to you and the IRS on a Form 1099-C, Cancellation of Debt. There are several exceptions to the taxability of cancelled debt, such as insolvency or bankruptcy. For more information see Publication 4681

Debt Forgiven

Stock Transactions

Invested in Stocks

If you invest in stocks, bonds, or mutual funds, you may be able to deduct certain expenses related to your investments. These expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Investment expenses are included as a miscellaneous expense on Schedule A subject to 2% AGI.

Own Worthless Stock

When you have stocks that have become completely worthless, you need to report them on Form 8949, Sales and Other Dispositions of Capital Assets, with your purchase date and December 31 as the date sold. This will determine whether this is a short-term or long-term loss.

Stock Transactions
bottom of page