topic Tax Year Prior to 2020: Investor Expenses - "Investor Advisor Fees' in Investors & landlords

Tax Year Prior to 2020: Investor Expenses - "Investor Advisor Fees'

harriet-maccrack — Wed, 03 May 2023 16:28:28 GMT

My financial investor gets a percentage of my net worth. Am I allowed to deduct his fees under 'Investor Advisor Fees'? Thanks

Yes. You can deduct certain expenses as miscellaneous ite...

KarenL2 — Sat, 01 Jun 2019 04:57:01 GMT

Yes. You can deduct certain expenses as miscellaneous itemized deductions subject to a 2% of Adjusted Gross Income threshold. On Schedule A (Form 1040), line 23, you can deduct expenses that you pay:

1. To produce or collect income that must be included in your gross income,

2. To manage, conserve, or maintain property held for producing such income, or

3. To determine, contest, pay, or claim a refund of any tax.

You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes.

How to get to that area: While inside the software and working on your return, type investment advisor fees in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to investment advisor fees. Select that to get to the general area.

I too pay my financial advisor a percentage of my assets...

dstover — Sat, 01 Jun 2019 04:57:02 GMT

I too pay my financial advisor a percentage of my assets for management of my SEP retirement plan. I am not yet retired and withdrawing from the account. The answer above suggests that the fee I pay to my advisor is deductible (above the 2% AGI threshold). However, answers to other questions about investment expenses deduction suggest that the expense is NOT deductible if it is automatically withdrawn from my retirement account, rather than being billed and paid separately. So I am confused: Is it deductible or not?