Investment Property & Assets: Section 212

Author: Jane Ryder

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Section 212 provides a deduction for federal tax purposes, for expenses incurred in investment activities. Generally, taxpayers are allowed to deduct all the ordinary and necessary expenses paid or incurred during the taxable year for the production or collection of income, incurred in holding property for the production of income, or for the determination, collection or refund of any tax. The TCJA of 2017 suspended miscellaneous itemized deductions, such as investment advisor fees, paid for portfolio management services on investment accounts. This course will discuss the specifics of section 212, including possible exceptions to the “miscellaneous itemized deductions” category, alternate treatment of expenses possibly eligible for deduction under section 162, and other strategies such as capitalizing costs under section 266. We’ll also review compliance matters related to section 212, deductible expenses related to trusts, and other solutions for deducting investment expenses.

Publication Date: July 2025

Topics Covered

• Section 212
• Miscellaneous itemized deductions
• Capitalizing investment costs
• Investment property
• Trust expenses
• Section 266
• TCJA

Learning Objectives

• Explain the specific components of Section 212
• Determine which asset and investment costs may qualify for different tax treatment
• Explain compliance matters related to capitalizing costs for investment property
• Explain how Section 212 affects trust expenses and related IRS guidance
• Identify possible alternative tax treatment for some investment costs

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None