Investment Income and Deductions
Interest, dividends, capital gains, long-term gains, short-term gains, original issue discounts, basis, dispositions, swaps, straddles, wash sales . . . the list of terms associated with investment taxation goes on and on. Fortunately, the list of ways to reduce your tax bill through investments is fairly extensive as well. Part III is the largest section of the book and it is fully devoted to the ways that investment income is taxed and the deductions and strategies that can be used to reduce that tax.
Tax planning and investment planning should go hand in hand. There are a great many tax considerations that should be understood and remembered as you make investment choices. With that said, it ...