Solved: I use Re Balance IRA to manage my IRA. Are the fees they charge for managing it deductible as an investment cost?
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bjraskidmore
New Member

I use Re Balance IRA to manage my IRA. Are the fees they charge for managing it deductible as an investment cost?

 
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macuser_22
Level 15

I use Re Balance IRA to manage my IRA. Are the fees they charge for managing it deductible as an investment cost?

Only if paid from outside funds - not is paid from within the IRA itself.

However, it is an miscellaneous itemized deduction.   Miscellaneous itemized deductions must be reduced by 2% of your AGI and if anything is left, then it is added to all other itemized deductions  and would have no benefit to you unless the total of all of your other itemized deductions exceed your standard deduction.

For 2016 the standard deductions are:

Single or filing Married Filing Separately - $6,300
Married Filing Jointly or Qualifying Widow(er) - $12,600
Head of Household - $9,300

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)


For example: If your AGI is $50,000 then 10% of that is $5,000.  All of your miscellaneous deductions would have to exceed $5,100 before there is any deduction at all, then if you are Married Filing Jointly, that deduction and all other itemized deductions must exceed $12,600 before you would have any tax benefit.




**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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1 Reply
macuser_22
Level 15

I use Re Balance IRA to manage my IRA. Are the fees they charge for managing it deductible as an investment cost?

Only if paid from outside funds - not is paid from within the IRA itself.

However, it is an miscellaneous itemized deduction.   Miscellaneous itemized deductions must be reduced by 2% of your AGI and if anything is left, then it is added to all other itemized deductions  and would have no benefit to you unless the total of all of your other itemized deductions exceed your standard deduction.

For 2016 the standard deductions are:

Single or filing Married Filing Separately - $6,300
Married Filing Jointly or Qualifying Widow(er) - $12,600
Head of Household - $9,300

(If over 65 or blind add $1,250 - $1,550 if filing single or HOH)


For example: If your AGI is $50,000 then 10% of that is $5,000.  All of your miscellaneous deductions would have to exceed $5,100 before there is any deduction at all, then if you are Married Filing Jointly, that deduction and all other itemized deductions must exceed $12,600 before you would have any tax benefit.




**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

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