Can I deduct advisory fees deducted from my IRA account (as an investment expense); I am receiving taxable income, reported on 1099_R?

[BobB7 · Accepted solution]

If they were deducted from your IRA you cannot deduct them on this year's tax return.  But since they reduce the funds in the IRA you will have less income to pay tax on when you eventually withdraw funds from your IRA.  In the future, see if you can pay those fees directly from taxable funds, which would allow a current deduction (to the extent they exceed 2% of income and if you itemize).

[ChrisJ]

Go to Search (top right), then type the exact phrase 'investment advisor fees' into Ask your question or search TurboTax. Jump to investment advisor fees from the results. 

TurboTax asks: Did you have any investment expenses? Answer yes and enter the fees on the next screen.

You can deduct fees you pay for counsel and advice about investments that produce taxable income. This includes amounts you pay for investment advisory services. 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.

More detail available here: https://www.irs.gov/publications/p550/ch03.html