what s in irs publication 550 
this is one of the agency s most complex topics covering information on the tax treatment of investment income and expenses it includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies such as money market funds according to the irs 4 it also explains what investment income is taxable and what investment expenses are deductible it explains when and how to show these items on your tax return there s information on how to determine and report gains and losses on the disposition of investment property another key section regards property trades and tax shelters 4 the publication has a handy table that shows where to report various types of investment income on each type of return originally this included 1040 1040a and 1040ez however the latter two forms are no longer available interest income is covered in detail including money market funds certificates of deposit penalties for early withdrawal gifts for opening accounts interest on insurance dividends prepaid insurance premiums u s obligations interest on tax refunds installment sale proceeds interest on insurance contracts how to treat usurious interest interest on frozen deposits below market loans foreign interest u s savings bonds educational savings bonds bonds sold between interest dates u s treasury bills and notes state or local government obligations mortgage revenue bonds and original issue discount oid 5 treatment of dividends is covered including ordinary dividends the most common type of distribution from a corporation or a mutual fund qualified dividends are covered which are subject to the same 0 15 or 20 maximum tax rate that applies to net capital gain capital gain distributions which are paid or credited to your account by mutual funds and real estate investment trusts reits are covered in detail 6 