J.K. Lasser's 1001 Deductions and Tax Breaks 2022, 2nd Edition

CHAPTER 8Investing

1. Penalty on Early Withdrawal of Savings
2. Loss on Bank Deposits
3. Capital Losses
4. Capital Gains and Qualified Dividends
5. Worthless Securities
6. Loss on Section 1244 Stock
7. Margin Interest and Other Investment‐Related Borrowing
8. Amortization of Bond Premium
9. Municipal Bonds
10. Savings Bonds
11. Gain on the Sale of Small Business Stock
12. Gain on DC Zone Assets
13. Gain on Reinvestments in Opportunity Zones
14. Foreign Taxes on Investments
15. Exercise of Incentive Stock Options
16. Losses from Investment Ponzi Schemes
17. Deferral of Income in Commercial Annuities

Putting money aside for that proverbial rainy day is an admirable and necessary goal but it can be a difficult proposition, especially when your paycheck doesn't seem to stretch far enough. Still, savings and investing are essential to your financial well‐being, and Americans are saving at a growing rate. According to Federal Reserve Bank, the personal savings rate (the ratio of personal savings to disposable personal income) in the United States, which is typically 6% to 7%, increased substantially during the pandemic, and was 9.6% in July 2021. Fortunately, the tax laws can help you to make the most of your efforts. It also provides tax breaks if your investments don't work out.

However, for 2018 through 2025, investment‐related expenses that were previously deductible as miscellaneous itemized deductions are not deductible. These include safe deposit box rental fees; subscriptions to investment newsletters, online services, and apps; ...