IRS publication 550 deals with expenses and income related to investment. It tells you how to get your investment income taxed properly. IRS publication 550 deals with income gotten by mutual fund shareholders and other investment sources. This publication also provides you with details on different types of investment income and tells you which ones of them are taxable. Plus, the publication explains the timing and procedure of including this income into your tax forms and papers.
IRS publication 550 also deals with investment expenses. These expenses may be related to buying or managing property, etc. This publication tells you which forms to fill out and how to do that. It provides detailed information on each type of investment income and expense.
You discover that any interest money you get checked on your account, which can be cashed or used by you, is subjected to taxing. At this, any penalties you pay for removing your money from trust funds or other investment options cannot be deducted from the net income you got in the form of dividends from those companies. Reading carefully IRS publication 550 you get tons of useful information on investment income taxes and possible deductions.