The deduction for real estate taxes includes amounts paid on raw land and second homes, not just your principal residence. Avoid unnecessary prepayments of state income taxes in years you may be subject to alternative minimum tax. Back to Top Interest. In addition to the deductions for mortgage and home equity interest, you can deduct investment interest to the extent of your net investment income. Interest that exceeds this limitation may be carried over to future years.
Interest paid on a margin loan from a stockbroker is considered investment interest.
Back to Top Charitable contributions. There also is an appraisal requirement for larger gifts. Be sure to keep track of any driving you do. You can deduct either your actual expenses or 14 per mile plus parking and tolls. If you travel over night while on a charity's business, you can deduct the expense unless the trip contained a significant element of personal pleasure, recreation, or vacation.