Missed Deductions

Physician's Money Digest, October31 2003, Volume 10, Issue 20

Most taxpayers who don't use thestandard deduction remember to writeoff the big deductions, like propertytaxes, home mortgage interest, and charitabledonations. But there's a whole arrayof deductions that are often forgotten.These write-offs are usually lumpedunder miscellaneous deductions, and theymust add up to more than 2% of youradjusted gross income (AGI) before youcan take anything off. Investment expensesare a good example of the kind ofdeduction that can be used. If you pay forbooks, magazines, or investment newslettersto help you invest, you can put thosecosts into a miscellaneous deductionbucket with expenses like the cost of asafe deposit box used for investment-relatedmaterial. Add other costs, likethose related to preparing your taxes, andthen deduct any amount that's more than2% of your AGI. For more information,visit the IRS Web site (www.irs.gov).