How do I deduct Financial advisor fees for managing financial portfolio? I have the current 2019 Turbo premium product

[galex39--]

Entering of financial advisor fees; ie Ameriprise

[Anonymous_ · Accepted solution]

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

See https://www.irs.gov/publications/p529#en_US_2019_publink10004392

[Giovanni1064]

How do I deduct the Financial Advisor fees for the 2020 Tax year.  

[MayaD · Accepted solution]

The Financial Advisor fees is considered Investment Expenses. Under the new tax law, investment expenses aren't deductible on your federal return, but some states still allow you to deduct them on your state return.

To enter your Expenses:

•  Sign into your TurboTax account 
•  Select Federal Taxes tab
•  Select Deductions & Credits
•  Scroll to Retirement and Investments
•  Select Other Investment Expenses

[tco0243]

I have a local financial advisor I meet with in person, and gave a one-time payment to develop a financial plan. This is not the faceless investment management fees that are built into mutual funds etc you buy thru a broker. Can I deduct the payment to my financial advisor?

[JotikaT2]

No, they still are not deductible under federal tax laws on your tax return.

See the section under Employee expenses and other miscellaneous deductions subject to the 2% limit  in the link below.

Deductions suspended by tax reform

@tco0243

[Sthomas4]

As this is no longer deductible under Sch A, is it correct to add the Advisory Fees as expenses of sale on schedule D, to increase the cost basis of the stock sold?

Thanks!

[Anonymous_]

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@Sthomas4 wrote:

As this is no longer deductible under Sch A, is it correct to add the Advisory Fees as expenses of sale on schedule D, to increase the cost basis of the stock sold?

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No, unfortunately, the fees cannot be added to the cost basis of the stock nor deducted from the sales proceeds.

[Sthomas4]

Thank you for the quick response.

[FOREHAWK]

Re: How do I deduct Financial advisor fees for managing financial portfolio on the federal return?  I have the current 2022 Turbo premium product?   How about the same question on the state of iowa? 

[CatinaT1]

As tagteam states above:

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

I have updated the link below.

See IRS Pub 529

It appears these are not deductible in Iowa either:

For tax years 2019 and later, Iowa is conformed to the federal repeal of miscellaneous itemized deductions and unreimbursed employee expenses for most taxpayers. Do not include any deductions on line 19 that were not allowable on your federal Schedule A, line 16. See 2021 IRS Publication 529 for more information about allowable deductions.