Can I deduct investment expenses, such as the cost of my investment advisor, on my 2019 California Income Tax return?

[DaveF1006]

According to this Turbo Tax link, investment fees are deductible in California. here is how you will claim them

1. log into your turbo Tax return
2. Select state in the left navigational pane in your program  Select state
3. If California is not selected, add state and select California
4. As you navigate through the questions you will arrive at a screen that says  Here's the income that California handles differently
5. Go to Investments>Investment Income Expenses

[Chaulk]

How do I calculate them? cause I have to eliminate the US Government bond portion?

[BillM223]

Only your manager of the portfolio that has the US government bonds can tell you what part of the investment fees applied to the bonds and what part did not.

If you can't get an answer, you might try some formula on allocation by percentage of taxable versus nontaxable bonds. Write down what you do, in case the state of California asks.

[Chaulk]

I did the percentage thing and figured 6% of the service was for government bonds,so do I subtract that? Doesnt it carry over automatically from the federal cause it is subject to 2 % limitation.

[DaveF1006]

You would enter these in the federal side.  Although the new tax law eliminated investment expense as an itemized deduction, it should transfer over to your California State return.

1. Go to federal>deductions and credits>retirement and investments>
2. other investment expenses
3. When you enter these, your investment expenses will appear in line 21 of your Schedule CA form

[Chaulk]

Looks like Line 21 is tuition expenses which line 21 are you talking about in California tax

[Chaulk]

Where again does it show on my California return?

[Chaulk]

I found under miscellaneous deductions.

[Chaulk]

That is what I did was go to the managers web page and see how much was charged for an IRA or NON taxable account plus whatever funds in 2019were over 50% US Government securities that was for 2019,add them all up and put that figure down on my return as NEGATIVE figure for non taxable income expense in the adjustment to income section in the state return. It was got to be a negative  number because the interview in easystep was confusing.

[Chaulk]

Now that I have learned to do this,I reallze I dd not do it  last year so that causes me to amend last years return,is that right?

[JohnB5677]

That's correct.  This may help you to get started.

If you've filed your return and need to add additional information, then you will have to prepare an amended return in TurboTax. 

• If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.”   
• If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040X for each tax return you are amending.

Amend ONLINE    OR     Amend CD/Download       Amend 2016 - 2019

[rhimbo]

What precisely do you mean by "investment fees"?  

Are you talking about deductions for "Investment Interest Expenses" or for "investment adviser fees"?  

[Chaulk]

I was talking about advisor fees. I dont know about interest fees

[rhimbo]

Hi @Chaulk , 

Sorry, I meant to direct my question to the original poster, @DaveF1006 .  

In TT Home & Business, to enter the amount you paid in adviser fees, for instance for investment adviser or advisory fees, go to 

Personal -> Retirements and Investments -> Other Investment Expenses ... 

Maybe you knew this already, sorry.  I was looking myself and found the answer since my last post.  

Cheers,