J.K. Lasser's 1001 Deductions and Tax Breaks 2023, 3rd Edition

CHAPTER 8Investing

• Penalty on Early Withdrawal of Savings

  Loss on Bank Deposits

  Capital Losses

  Capital Gains and Qualified Dividends

  Worthless Securities

  Loss on Section 1244 Stock

  Margin Interest and Other Investment‐Related Borrowing

  Amortization of Bond Premium

  Municipal Bonds

  Savings Bonds

  Gain on the Sale of Small Business Stock

  Gain on DC Zone Assets

  Gain on Reinvestments in Opportunity Zones

  Foreign Taxes on Investments

  Exercise of Incentive Stock Options

  Losses from Investment Ponzi Schemes

  Deferral of Income in Commercial Annuities

  Losses on Digital Assets

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

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. However, during 2022, with the spike in inflation ...