Where to report Brokerage Fees for manage fund such as Wealthfront?

[kkurni]

In my 1099-DIV and 1099-B, there is fees that are not reported to IRS.

Where should I put the brokerage management fees for my managed funds like Wealthfront?

[LenaH · Accepted solution]

Brokerage Fees are miscellaneous itemized deductions and are no longer deductible. Under the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, the deduction for 2% miscellaneous expenses (such as brokerage fees) has been suspended in tax years 2018 through 2025.

Your state may allow that deduction so include it if you itemize. 

To enter your expenses, please follow the instructions below:

1. Open (continue) your return in TurboTax if it's not already open
2. Click on Federal on the left-hand side. 
3. Click on Deductions & Credits
4. Click Start next to Other Investment Expenses under Retirement and Investments
5. Follow the on-screen instructions. 

[gordongrand]

I have a 'managed investment account' where the fees are based on a percentage of the account balance instead of fees for sales of stock.  Can these managed fees be used  on form 8960 part 2 line 9c (Miscellaneous investment expenses)   to reduce the Net Investment Income?

[GeorgeM777]

No, your investment management fees are no longer deductible as they are considered a miscellaneous itemized deduction.  The Tax Cut and Jobs Act eliminated the deductibility of miscellaneous itemized deductions.  

@gordongrand

[cp_47]

where to report tax deduction for brokage expense 

[RobertB4444]

As @GeorgeM777 says above, the Tax Cuts and Jobs Act eliminated the deduction for brokerage fees.  You may no longer deduct these fees on your tax return.

@cp_47