Management advisory fees

Forum|Forum|2 years ago
June 20, 2023
2 replies
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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, …

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Best answer by Bsch4477

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

Bsch4477

Answer

Level 15

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

Opus 17

Level 15

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.