Account fee from Supplemental Information Not Reported to the IRS

[bhavyahari]

Hello,

I have thes ADR/ADS fee when can I enter these , I have not sold these stocks in 2021. Are ADR fee tax deductible ?

These values are from 1099 Summary of 2021 Supplemental Information Not Reported to the IRS 

Account Fees

Description
ROLLS ROYCE HOLDINGS SPON ADR EACH REP 1 Date  07/12/21 Amount 573.34

[PattiF · Accepted solution]

Unfortunately, these fees can no longer be deducted. These fees are deducted from the dividends received. The ADR fees allow one to buy foreign stocks with US dollars and to receive dividends in US dollars. They are an investment expense, not an investment advisor fee. Investment advisor fees are still deductible in some states such as California, but ADR is not an investment advisor fee.

These expenses are no longer deductible on Schedule A as in the past. This may change in 2026 when the law expires.