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jeffandamy
New Member

Can you deduct investment advisory fees, if the fee is deducted directly from the account itself?

 
1 Best answer

Accepted Solutions
KarenL2
Level 5

Can you deduct investment advisory fees, if the fee is deducted directly from the account itself?

Yes, as long as the fees didn't already adjust your basis in your investments.   It is a Miscellaneous itemized deduction on Schedule A.  They are subject to a 2% of Adjusted Gross Income threshold.  But, if they are high enough and you itemize deductions on Schedule A, it might benefit you.

To get to the general area to enter those fees:  While inside the software and working on your return, type investment expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to investment expenses.  Select that to get to the general area. 

Follow the screens to the one that asks for investment advisor fees (or similar) and enter it there.

 

On Schedule A (Form 1040), line 23, you can deduct expenses that you pay:

1.      To produce or collect income that must be included in your gross income,

2.      To manage, conserve, or maintain property held for producing such income, or

3.      To determine, contest, pay, or claim a refund of any tax.

You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. 


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2 Replies
KarenL2
Level 5

Can you deduct investment advisory fees, if the fee is deducted directly from the account itself?

Yes, as long as the fees didn't already adjust your basis in your investments.   It is a Miscellaneous itemized deduction on Schedule A.  They are subject to a 2% of Adjusted Gross Income threshold.  But, if they are high enough and you itemize deductions on Schedule A, it might benefit you.

To get to the general area to enter those fees:  While inside the software and working on your return, type investment expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to investment expenses.  Select that to get to the general area. 

Follow the screens to the one that asks for investment advisor fees (or similar) and enter it there.

 

On Schedule A (Form 1040), line 23, you can deduct expenses that you pay:

1.      To produce or collect income that must be included in your gross income,

2.      To manage, conserve, or maintain property held for producing such income, or

3.      To determine, contest, pay, or claim a refund of any tax.

You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. 


fanfare
Level 15

Can you deduct investment advisory fees, if the fee is deducted directly from the account itself?

Yes , if the account is a taxable account.

No, if the account is a tax-deferred account.

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