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Should deduction for investment account management fees exclude the portion of fee allocable to tax exempt income?
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Should deduction for investment account management fees exclude the portion of fee allocable to tax exempt income?
Unfortunately, no. Investment management fees relating to tax-exempt income are not deductible.
Per IRS Pub 550: "You cannot deduct expenses you incur to produce tax-exempt income. Nor can you deduct interest on money you borrow to buy tax-exempt securities or shares in a mutual fund or other regulated investment company that distributes only exempt-interest dividends."
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Should deduction for investment account management fees exclude the portion of fee allocable to tax exempt income?
Unfortunately, no. Investment management fees relating to tax-exempt income are not deductible.
Per IRS Pub 550: "You cannot deduct expenses you incur to produce tax-exempt income. Nor can you deduct interest on money you borrow to buy tax-exempt securities or shares in a mutual fund or other regulated investment company that distributes only exempt-interest dividends."
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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