Account Fees reported on 1099

[MAC18]

Are the account fees reported to me on form 1099 deductible?  Should this expense go to line 16 of Form 4952?  These fees result form my ownership of various ADR's.

[AmyC · Accepted solution]

Yes in theory. At the federal level the deduction is suspended through 2025 but it may be deductible on your state return.

See What is Form 4952: Investment Interest Expense Deduction

[lesliesalt]

I took it that the person asked about deducting account fees for managing foreign investments/ADRs using F4952. Isn't that related to Investment INTEREST Expense, i.e., the interest charged for borrowing money to invest, not Investment Expense, i.e., fees paid for investment management?