Yes, you may deduct expenses related to your investment income, according to the IRS. Investors can generally deduct the expenses of producing taxable investment income, including expenses for investment counseling and advice, legal and accounting fees, and investment newsletters. You may report these expenses on IRS Form 1040, Schedule A, “Itemized Deductions”, as miscellaneous deductions, as long as the expenses exceed 2% of your adjusted gross income. Interest paid on money to buy or carry investment property that produces taxable income is also deductible on Schedule A, but the deduction cannot exceed the net investment income.