Are Advisory Fee tax-deductible

[aggravated6]

Not clear to me. If fee is deducted in fee column tota/ gain/loss column seems I can deduct this fee?

[Critter · Accepted solution]

Investment management expenses are a miscellaneous deduction on Schedule A (Itemized Deductions) subject to 2% of your adjusted gross income.  

Select the "federal" tab, then "deductions & credits."  Then select "find deductions myself" then "other deductions & credits" then "other deductible expenses."  Say yes to the "other less common expenses" screen then you'll finally see a screen saying "enter other less common expenses."  Enter your portfolio management fees here. 

In order to get a tax benefit from this, you need to have more than 2% of your adjusted gross income in miscellaneous itemized deductions, plus you need to itemize your deductions on Schedule A.  If you owe Alternative Minimum Tax, these miscellaneous deductions are not deductible.

[rjs]

The answer above from Critter#2 applies to 2017. For 2018 through 2025 the new tax law eliminates all miscellaneous itemized deductions subject to the 2% of AGI limitation, including investment management or advisory fees.

[jperez20]

IRS publication https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax seems to suggest that you can still take the deduction for the Net Investment Income Tax. Turbotax does not seem to carry the expense over to the NII calculations.

[DMarkM1]

The investment advisory fees deduction for the Net Investment Income tax have also been suspended for tax years 2018-25.  See this link for discussion and more information.  Also, here are the instructions for form 8960 (see pages 17-18).