topic Investment Advisor Fees in Deductions & credits

Investment Advisor Fees

erica28 — Sun, 14 Mar 2021 23:34:57 GMT

I have a managed account, a managed traditional IRA, and a managed Roth IRA. Should I enter the investment advisor fees for all of these accounts in the federal TurboTax (in hopes that they will port over to my state return)? Or does it depend on whether the account is tax-deferred or tax-exempt, plus whether the fee was paid out of the account or from elsewhere? Thank you in advance for any tips you can provide.

Re: Investment Advisor Fees

macuser_22 — Sun, 14 Mar 2021 23:44:11 GMT

The 2017 Tax Cuts and Jobs Act eliminated that Federal deduction for 2018-2025, but it might still be a deduction is some states.

Re: Investment Advisor Fees

erica28 — Fri, 19 Mar 2021 16:07:10 GMT

Thank you for your response, @macuser_22! From what I've been reading, I think my state is one of those that didn't conform to the feds.

Re: Investment Advisor Fees

tco0243 — Mon, 17 May 2021 18:52:29 GMT

I have a local financial advisor I meet with in person, and gave a one-time payment to develop a financial plan. This is not the faceless investment management fees that are built into mutual funds etc you buy thru a broker. Can I deduct the payment to my financial advisor?

Re: Investment Advisor Fees

DaveF1006 — Mon, 17 May 2021 22:11:02 GMT

These are no longer deductible from federal taxable income but some states do allow investment advisory fees to be deducted as itemized deductions if you are able to itemize on your state return. To enter:

Log into Turbo Tax
Go to Federal>deductions and credits
Retirement and investment
other investment expenses.

Re: Investment Advisor Fees

mitzeljh — Wed, 02 Feb 2022 19:36:33 GMT

I cannot enter Investment Advisor Fees as a deduction because the entry box is grayed out (2021 Turbotax deluxe for desktop). I should be able to enter it because CA still allows the deduction.

Re: Investment Advisor Fees

FangxiaL — Thu, 03 Feb 2022 01:33:51 GMT

Here is how to enter Investment Advisor Fees on federal return which will carry over to your CA state return:

Within federal taxes:

Go to Deductions & Credits, then Retirement and Investments section
Click Start next to Other Investment Expenses
On next screen, select Enter my expenses
On next screen, you will be able to enter the amount of investment advisor fees.
When you enter this, your investment expenses will appear on your Schedule CA form.

Re: Investment Advisor Fees

jlbrown813 — Sat, 02 Mar 2024 04:37:47 GMT

Hello, for state purposes do I enter all investment advisory fees or just those related to taxable investment accounts. My advisor breaks them out so wondered if I can only include the fees related to taxable accounts.

Re: Investment Advisor Fees

RachelW33 — Sat, 02 Mar 2024 15:07:56 GMT

It depends. You can include the advisory fees paid for all of your investment accounts as long as they were paid with "outside taxable dollars".

For example, if you paid advisory fees for an IRA account directly (not from with the IRA account), you can include those fees.

And as you mentioned, this is only applicable if your State allows a deduction, as Federal does not.

@jlbrown813