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

[HelenC12]

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

[jboy21]

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

[jboy21]

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?

[Vanessa A]

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

[jboy21]

Thank you Vanessa! Very helpful and prompt.