Turbo tax is not including Investment Advisory Fee in Form 8960, Line 9c Mis. Investment expenses.

[CarolynM]

Generally, these amounts are reported on Form 4952 and must exceed 2% of your AGI before you will notice a deduction in your tax obligation. 

[jametz123]

that is NOT TRUE. investment expenses limited by section 67 (the 2% AGI threshold) are STILL ALLOWED for purposes of offsetting the Net Investment Income (NII) tax but Turbotax does not let you do this. It iOS a mistake in the software

[deejill]

I concur.  Is TurboTax monitoring this?  Is the bug going to be corrected?

[SweetieJean]

The investment expenses will NOT flow to form 8960 unless they are above the 2% threshold and are able to be deducted on the Schedule A.  According to the instructions for Form 8960:   "The amounts reported on line 9c are the amounts allowable *after* the application of the deduction limitations imposed by sections 67 and 68."

[lovinsf]

This is INCORRECT! TurboTax is wrong! The new tax law allows for all investment expenses to offset tax for purposes of form 8960. TurboTax is wrong and it is costing its customers real $’s

[lovinsf]

To be more clear, the new tax law does not require investment expenses to exceed 2% of AGI for purposes of offsetting the tax on form 8960. TurboTax is absolutely wrong.

[SweetieJean]

Please provide a cite to the new tax law that says that.  Most of the provisions of the Tax Reform Act do not go into effect until the 2018 tax year (returns filed in 2019). The instructions for 2017 IRS Form 8960 contain the wording I cited above.

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i8960.pdf">https://www.irs.gov/pub/irs-pdf/i8960.pdf</a>

[SweetieJean]

Also see:
<a rel="nofollow" target="_blank" href="https://www.syndicatetax.com/blog/so-long-to-the-tax-deduction-for-investment-expenses/43248">https:...>

[macuser_22]

Starting on 2018 (next years tax) the 2% deduction goes away.  It is still in effect for the 2017 tax year.

<a rel="nofollow" target="_blank" href="https://www.law.cornell.edu/uscode/text/26/67">https://www.law.cornell.edu/uscode/text/26/67</a>
§67(g).

The new tax law does not eliminate the the 2% floor, it eliminates the deduction altogether.

[SweetieJean]

Thanks for that @macuser_22.
I believe that @lovinsf misunderstood this.