Checklist of Deductions for Investors -- To encourage you to invest, Congress lets you deduct many of the expenses involved. Go through this list to see what you may be able to deduct.

Expenses You Can Deduct

Legal fees: If you sought legal advice regarding your investments, you can deduct those fees. Professional fees: You can deduct fees you paid to your accountant in compensation to provide you with advice about the tax effects of certain investment transactions. Fees for investment advice: You can deduct payments to a broker or an investment manager to manage your stocks and other investments. Books and magazines regarding investments. Safe deposit box fees, to the extent that you store your securities or other investment paperwork in the box. Fees you pay directly to your IRA or Keogh custodian. Traveling costs related to your investments, such as trips to your broker’s or investment advisor’s office and trips to look after investment property. Home computer costs if you use the computer to manage your investment activities. You generally must depreciate the computer using the straight-line method. Cost of software you use to manage your investments. In certain circumstances you may need to depreciate the software. Service charges you pay as part of a dividend reinvestment plan. Expenses You Cannot Deduct

Broker’s commissions that you pay for buying and selling securities. These affect your tax cost and the ultimate gain or loss on their eventual sale. Fees charged by your bank for check writing. Seminars on investments and investing strategies. Expenses of attending a stockholders’ meeting, even if you own stock in the company and the meeting would be useful toward making further investments. Any expenses you incur toward generating investment income that’s exempt from taxes (such as municipal bonds). Where Do I Take These Deductions?

You deduct these expenses as miscellaneous expenses on Schedule A.

Altogether, these miscellaneous expenses must add up to more than 2% of your Adjusted Gross Income (AGI) before you can take the deduction. And even then you only get to deduct the amount above the 2% limit. You should keep track of your investment expenses, because they can add up quickly, and they may help reduce your taxable income.

For more on what can work for you, against you, and how to do better this year, see J.K.Lasser’s Your Income Tax 2008 and the Supplement at www.jklasser.com .

For further information, to request a review copy of J.K. Lasser’s Your Income Tax 2008 or to schedule an interview with a J.K. Lasser spokesperson -- Donna LeValley-Cocovinis, Esq. Or Barbara Weltman, Esq.-- please contact: