Are broker investment advisory fees deductible?

[Taxbo]

Are investment advisors fees deductible under the new tax law?

[DoninGA]

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@Taxbo wrote:

Are investment advisors fees deductible under the new tax law?

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No they are not.

[MollyM2]

Can you deduct 2018 or 2019 investment advisory fees?

[SusanY1]

No, these are not deductible in 2018 or 2019 due to changes in the law that went into effect in tax year 2018.

@MollyM2

[maglib]

@BRN2CRZ No, you can not take a deduction as they are paid before taxes. You would have to take a distribution which if a roth not taxed then pay them or you would have to pay taxes on a non roth distribution which wouldn't normally help you as the distribution would be taxable. As long as the money used was never taxed, there is no deduction.

The only impact of investment advisory fees would be state tax returns.

Hope this helps.

[rosbo101]

Thank you for this thorough reply. However, regarding "investment fees and expenses" being NOT deductible, does this distinction matter: I pay account management fees, to a Registered Investment Advisor, for an individual brokerage account. In other words, not commissions, not financial advice, but account management -- IF that distinction matters. Are these account management fees, paid to a Registered Investment Advisor, deductible?

[CatinaT1]

Regardless of what the fees are called, they are not deductible.

[fredschuhmann]

Are Broker Investment Advisory Fees deductible either on Federal or State Income Tax returns?

[Vanessa A]

Yes, they are deductible, when you sell your investment, on Federal and generally are on your state, but every state has different rules. 

When you report the sale of the asset you will be asked if you had any advisory fees, this is where you will enter them. 

[Tsing]

Now I am confused.  At first you said that the brokers fees are not deductible, but now you say that they are.  My financial advisors at a financial institute charges investment advisory fees. They do not report this information to the IRS. so can I deduct this as miscellaneous deduction in the investment? 

[fanfare]

Investment advisory fees are no longer deductible.

There's no box on 1099-B for "fees".

[maglib]

Investment advisor fees can only be deductible if someone  is in the business of investing.  Yes, some people are in the business of investing and claim investment advisory fees on schedule c's and mark to market their whole portfolios.  that's an exception.  They also are deductible when they are in non-grantor trusts or in corporate structures.  

They also may be deductible in the future as you never know what the tax man may bring.

Currently miscellaneous itemized deductions are NOT deductible federally..  

SOME states though may allow them... I can not be certain there are none that do not allow an adjustment for them.

These fees would just be adjustments to basis if you did incur them no different then when brokers had trading fees.  Then there is also a difference in fees allocable to principal and fees allocable to income production pre 2018 but, that no longer matters.