Publication 550: Investment Income and Expenses

This IRS publication provides guidance on reporting all investment income and expenses, including capital gains and losses, on your tax return.

What is Publication 550?

A. Publication 550 explains how to report and understand the taxes associated with:

  1. Investment income: Interest, dividends, capital gains, and other distributions.
  2. Investment expenses: Interest paid on investments, fees for managing investments, and other related costs.
  3. Capital gains and losses: Profits or losses from selling investments.

B. Applies to individual shareholders of mutual funds, money market funds, and other similar investments.

C. Does not apply to qualified retirement plans and IRAs.

Who should use Publication 550?

Anyone who receives investment income or incurs investment expenses, including:

  • Individual investors
  • Shareholders of mutual funds or other regulated investment companies
  • Investors who buy and sell stocks, bonds, or other investment property.

Benefits of using Publication 550

  • Provides clear and up-to-date information on complex tax topics.
  • Helps taxpayers understand their filing requirements and avoid errors.
  • Offers guidance on maximizing deductions and minimizing tax liabilities.