There are two deductions that taxpayers often overlook with regard to their investments: net investment interest and investment advisor fees. Both are usually found buried in the “Tax Documents” you receive covering your investments.

Investment interest. Margin interest.is usually considered investment interest. It is deductible to the extent of your net income from investments for the taxable year. Net income from investments includes all rents, royalties, dividends, and interest. Qualified dividends and long-term capital gains do not count as investment income unless you elect to have them taxed as regular income.

Investment advisor fees are deductible as Miscellaneous Deductions, discussed elsewhere in this issue.

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Call me if you are interested new laws containing big tax breaks for landlords or tenants who pay for certain commercial leasehold improvements.