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vabhijit
Level 2

I manage my own (stock based) investment account but have a paid membership with an online website for advice on what stocks to invest. Can I deduct the membership fee?

 
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CathiM
New Member

I manage my own (stock based) investment account but have a paid membership with an online website for advice on what stocks to invest. Can I deduct the membership fee?

Yes, you can deduct it as an investment expense. To deduct investment  expenses, you must have enough itemized deductions (ie. Medical, mortgage interest, property taxes, charitable giving, ect) to exceed your Standard Deduction. If you itemize, your deduction is limited to the extent that it exceeds 2% of your Adjusted Gross Income.

To report investment expenses in TurboTax:

  • Click Tax Tools in the black bar to the left of your screen.
  • Select Tools.
  • In the pop up window, select Topic Search.
  • In the search bar, type in investment advisor fees and hit enter

You will arrive at the Other Investment Expenses page, click on Yes

On the next screen you can enter it in the box by Investment Advisor Fees


Your deductions for investment expenses may be limited by:

  • The at-risk rules,

  • The passive activity loss limits,

  • The limit on investment interest, or

  • The 2% limit on certain miscellaneous itemized deductions.

Publication 550 (2016), Investment Income and Expenses

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1 Reply
CathiM
New Member

I manage my own (stock based) investment account but have a paid membership with an online website for advice on what stocks to invest. Can I deduct the membership fee?

Yes, you can deduct it as an investment expense. To deduct investment  expenses, you must have enough itemized deductions (ie. Medical, mortgage interest, property taxes, charitable giving, ect) to exceed your Standard Deduction. If you itemize, your deduction is limited to the extent that it exceeds 2% of your Adjusted Gross Income.

To report investment expenses in TurboTax:

  • Click Tax Tools in the black bar to the left of your screen.
  • Select Tools.
  • In the pop up window, select Topic Search.
  • In the search bar, type in investment advisor fees and hit enter

You will arrive at the Other Investment Expenses page, click on Yes

On the next screen you can enter it in the box by Investment Advisor Fees


Your deductions for investment expenses may be limited by:

  • The at-risk rules,

  • The passive activity loss limits,

  • The limit on investment interest, or

  • The 2% limit on certain miscellaneous itemized deductions.

Publication 550 (2016), Investment Income and Expenses

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