What are the tax deductions available for my investments?

What are the tax deductions available for my investments?

There are several tax deductions you can claim on your investments, such as capital losses, investment interest expenses, and certain fees.

Can you explain how capital losses work?

Sure! Capital losses occur when you sell an investment for less than what you paid for it. You can use these losses to offset capital gains and reduce your taxable income.

Are there limits on how much I can deduct?

Yes, for capital losses, you can deduct up to $3,000 per year against your ordinary income. Any excess can be carried forward to future years.

What about investment interest expenses?

Investment interest expenses can be deducted up to the amount of your net investment income. If your expenses exceed your income, you can carry the excess forward.