Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 20, 2023 12:08:07 PM

Are ADR dividend fees deductible? If so, where in TurboTax do I enter them?

0 5 1179
5 Replies
Expert Alumni
Feb 20, 2023 12:28:29 PM

No, ADR dividend fees are not deductible due to the 2018 Tax Cuts and Jobs Act suspended the deductibility of investments expenses.  

Level 2
Feb 21, 2023 2:40:47 PM

Thanks...understood at the Federal level they are not deductible.  What about for State of California deduction?

 

Level 2
Feb 21, 2023 2:46:35 PM

I saw someone posted this last year regarding ADR fees:

 

"Yes. Under the new tax law, other investment expenses do not count on your federal return. They do count on the California return. Here is how to enter them:


       Federal
       Deductions & Credits
       Retirement and Investments
       Other Investment Expenses"
 
Is this accurate for the State of California as it relates to taking ADR Advisory Custodial fees?

 

Expert Alumni
Feb 21, 2023 3:04:43 PM

Yes, for CA your ADR fees are tax deductible if you are itemizing your CA return.  This would be considered an investment expense.

 

You would enter them by selecting the following:

  • Federal
  • Deductions and Credits
  • Show More next to Retirement and Investments
  • Start next to Other Investment Expenses
  • Select yes you want to enter your Investment Expenses
  • Enter the ADR's under the Investment Advisor Fees section

 

Level 2
Feb 21, 2023 7:42:26 PM

Thank you Vanessa! Very helpful and prompt.