Should deduction for investment account management fees exclude the portion of fee allocable to tax exempt income?

annual4 · ‎June 6, 2019

PatriciaV · ‎June 6, 2019

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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PatriciaV · ‎June 6, 2019

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."

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Should deduction for investment account management fees exclude the portion of fee allocable to tax exempt income?