Are commissions paid to brokers from taxable accounts, tax deductible? Also, the same question with regard to IRA accounts that have an RMD?

My broker sells and buys stock in 3 accounts. One is a brokerage account, one is a personal IRA, (from which I am not yet required to take an RMD).The last account is a beneficiary IRA from which I do receive an RMD.

There are commissions listed for transaction. Are those commissions tax deductible? If so, on which accounts? And where do I put it in Turbo Tax for Home and Business?

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1 Best answer

Level 15

Jun 3, 2019 11:05:11 AM

Commissions for transactions within an IRA simply reduce the value of the IRA. They are not reported anywhere on a tax return. Gains or losses withing a IRA are internal to the IRA and only affect the value of the IRA.

(Certain "account management fees" paid separately from other personal funds and not from the IRA can be a miscellaneous itemized deduction reduced by a 2% of AGI floor.)

Level 15

Jun 3, 2019 11:05:11 AM

(Certain "account management fees" paid separately from other personal funds and not from the IRA can be a miscellaneous itemized deduction reduced by a 2% of AGI floor.)

New Member

Jun 3, 2019 11:05:12 AM

Are 401K accounts treated the same way as IRA's?

Level 15

Jun 3, 2019 11:05:14 AM

401(k) plans are administered by your employer under the rules of the plan. You do not pay commission with a 401(k) plan.

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Are commissions paid to brokers from taxable accounts, tax deductible? Also, the same question with regard to IRA accounts that have an RMD?