Are investment advisory fees deductible in 2018?

[rsull111]

Are investment advisory fees deductible in 2018

[Coleen3 · Accepted solution]

Unfortunately, no. They were eliminated with 2018 Tax Cuts and Jobs Act (TCJA).

Fees for investment costs were deductible as a miscellaneous itemized deduction, to the extent they and other costs exceeded 2 percent of your adjusted gross income

[mikeanddiane1]

I agree

[DavidHH]

Investment Advisory Fees are still deductible on some state (e.g. New York) returns.

[rrtaft]

Where are they deductible in the NY Turboxtax?

[DavidHH]

On line 24 of NY Form IT-196.

[rrtaft]

I see it there, I meant in Turbotax.

[DavidHH]

Just go to the Forms option of TurboTax, and you can input details directly on Form IT-196 (which is already partially filled out with transfers from Federal). Never saw a place to input it in the Step by Step format.

[DavidHH]

Found where to input in Step by Step. It is input in the Federal Section under: Personal - Deductions & Credits -Retirement & Investments - Other Investment Expenses. Choose "Enter my Expenses". Then If you then go on and enter Investment Expenses, it will populate line 24 on NY Form IT-196. Beware, however, if you enter something directly on Form IT-196 it overrides an entry coming from Federal Step by Step.

[rrtaft]

Thank you, I don't know why I didn't see that the first time around.

[brakeshoe87]

Sadly the inline help for 2018 TurboTax for Business still says these are deductible.

 - Include any other deductions subject to the 2% floor that are attributable to the production of investment income.

Some common investment expenses are:

 - Safe deposit box
 - Investment publications
 - Investment counsel and advice
 - Managed account fees