Investment and tax expenses
Many of us forget tax planning and investment expenses because they are part of miscellaneous itemized expenses. Their total must exceed 2% of your adjusted gross income before you get any tax benefit.
Expenses to track include your employee business expenses, tax preparation fees and even the portion of your legal or accounting fees relating to tax planning. For example, in a divorce, the legal time spent relating to the tax aspects of alimony and child support would qualify. So too would the tax aspects of estate planning.
Many people shortchange themselves on the deduction of investment expenses. They remember the
safety deposit box fees. But how about the annual fee paid your broker and any IRA fees you
pay directly? You may remember the cost of your investment publications on subscription
-- such as Forbes, Fortune, Business Week, Worth and Barron's. But how about the
investment newspapers you buy off the newsstands? You keep track of your long distance
phone calls to your broker and investment adviser, but how about the mileage to go see them?