Many taxpayers overlook the long list of deductions that they may take when completing and filing their tax returns. The IRS has estimated that millions of taxpayers overpay their taxes each year because they fail to avail themselves of all of the possible deductions. Here is the second part of our multi-part blog on the most overlooked tax deductions:

 INVESTMENT RELATED DEDUCTIONS

Amortizing Bond Premiums

The IRS offers assistance for taxpayers who purchase taxable bonds for more than face value. The purpose of such a purchase is to capture a yield higher than any offered by current market rates. Down the road, the IRS will tax the extra interest that this higher yield produces.