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Financial Focus: The Path to a Bigger Tax Refund for 2021 – Investments (Part 6 of 7)

Do you own stock? Bonds? Mutual funds? Congratulations, then you could have investment interest or dividend and capital gains. Or God forbid, capital losses!

Is the interest, dividends and capital gains taxable? Can you deduct your capital losses?

Investment interest
Deductible investment interest is interest paid on margin accounts or interest paid on loans used to buy or carry investments. For example, if you get a margin loan through your brokerage account and use it to buy more stocks, then the interest you pay is investment interest. Another example would be if you bought land to hold as an investment, then the interest expense you pay on the loan to obtain the land is investment interest.

Investment interest is deductible up to the amount of your investment income. Investment income includes dividends, interest income, and royalties. Disallowed investment interest is carried forward and can be used on future year tax returns.

Investment Expenses
Investment expenses are no longer deductible on Schedule A due to the Tax Cuts and Jobs Act.

Capital Loss Carryovers
If you have more capital losses than capital gains on previous year tax returns, a capital loss carryover can be used on your 2018 tax return. Look at Schedule D, Lines 15 and 16 of your 2017 tax return. If Schedule D Lines 15 and 16 are losses, then you might have a capital loss carryover to 2018.

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info and The Bronx Chronicle. Mr.  Rivieccio also pens a financial article called “Money Talk”. Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. Financial Focus Interactive is now an app and a place where one can: Read, Listen, Watch Talk & Learn about Financial Solutions with like-minded people and a live financial advisor. Financial Focus Interactive app can be found on the Google Play Playstore or on or internet app at: https://www.financialfocus.app For financial assistance, Anthony can be reached at (347) 575-5045. 

Welcome to the Norwood News, a bi-weekly community newspaper that primarily serves the northwest Bronx communities of Norwood, Bedford Park, Fordham and University Heights. Through our Breaking Bronx blog, we focus on news and information for those neighborhoods, but aim to cover as much Bronx-related news as possible. Founded in 1988 by Mosholu Preservation Corporation, a not-for-profit affiliate of Montefiore Medical Center, the Norwood News began as a monthly and grew to a bi-weekly in 1994. In September 2003 the paper expanded to cover University Heights and now covers all the neighborhoods of Community District 7. The Norwood News exists to foster communication among citizens and organizations and to be a tool for neighborhood development efforts. The Norwood News runs the Bronx Youth Journalism Heard, a journalism training program for Bronx high school students. As you navigate this website, please let us know if you discover any glitches or if you have any suggestions. We’d love to hear from you. You can send e-mails to norwoodnews@norwoodnews.org or call us anytime (718) 324-4998.

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