topic Management advisory fees in State tax filing

Management advisory fees

thavie123 — Tue, 24 Feb 2026 06:43:15 GMT

1) Are management advisory fees deductible on my 2022 California tax return?

2) Are IRA management advisory fees, paid from my IRA, deductible on my 2022 California tax return?

I am aware they are not deductible on the federal return.
In other words, can I include them on:
Schedule CA(540), Part II, line 21: Other expenses: investment, …

Re: Management advisory fees

Bsch4477 — Tue, 20 Jun 2023 17:01:01 GMT

Fees paid within the IRA are not deductible. Other investment fees are deductible on the California return subject to the 2% AGI limitation.

Re: Management advisory fees

Opus 17 — Tue, 20 Jun 2023 17:44:02 GMT

Nothing that happens inside an IRA is deductible or taxable. When you withdraw funds, you pay tax on what you withdraw. If your withdrawal is less than you hoped because of fees or investment losses, then you just withdraw less and pay less tax.

Other investment fees are miscellaneous itemized deductions subject to the 2% rule. These deductions are disallowed at the federal level for tax years 2018-2025 but may still be allowed in some states. You must enter them in the federal section and they will flow to your state tax return if the situation applies to you.