Per IRS Publication 17 page 202 Investment
Fees and Expenses You can
deduct investment fees, custodial fees, trust administration fees, and other
expenses you paid for managing your investments that produce taxable income.
If the estate plan involves advice on the construction of income generating instruments, such as an income trust, or provides guidance on the use of property transfer methods to avoid Federal or State Estate or Inheritance tax, these would meet the IRS restrictions for the ability to deduct such expenses. Other examples might include investment advice for trusts held by the estate, trust tax preparation fees and account custodial fees while held by the estate
However, the billing invoice from the legal or accounting authority providing this advice would have to clearly identify these expenses as being for the current or future production of income or payment of current or future tax. Estate planning relating to the simple transfer of property or guardianship as is common with most wills, or the use of estate planning instruments such as powers of attorney, living wills or the writing of trusts to prevent estate assets from being encumbered inprobate, would be deemed personal expenses that would not be deductible.
Investment management expenses are a miscellaneous
deduction on Schedule A (Itemized Deductions) subject to 2% of your
adjusted gross income.
To enter investment fees and expenses:
- Type investment
advisor fees in the search/find box and click search
- Click
on Jump to investment advisor fees.
- Continue
with the onscreen questions.
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