Are Advisory Fee tax-deductible

Forum|Forum|7 years ago
June 3, 2019
1 reply
5 views

Not clear to me. If fee is deducted in fee column tota/ gain/loss column seems I can deduct this fee?

TurboTax Deluxe Windows

Best answer by Critter

Investment management expenses are a miscellaneous deduction on Schedule A (Itemized Deductions) subject to 2% of your adjusted gross income.

Select the "federal" tab, then "deductions & credits." Then select "find deductions myself" then "other deductions & credits" then "other deductible expenses." Say yes to the "other less common expenses" screen then you'll finally see a screen saying "enter other less common expenses." Enter your portfolio management fees here.

In order to get a tax benefit from this, you need to have more than 2% of your adjusted gross income in miscellaneous itemized deductions, plus you need to itemize your deductions on Schedule A. If you owe Alternative Minimum Tax, these miscellaneous deductions are not deductible.

CritterAnswer

Level 15

Investment management expenses are a miscellaneous deduction on Schedule A (Itemized Deductions) subject to 2% of your adjusted gross income.

rjs

Level 15

The answer above from Critter#2 applies to 2017. For 2018 through 2025 the new tax law eliminates all miscellaneous itemized deductions subject to the 2% of AGI limitation, including investment management or advisory fees.

jperez20

Level 2

IRS publication https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax seems to suggest that you can still take the deduction for the Net Investment Income Tax. Turbotax does not seem to carry the expense over to the NII calculations.