Under new the Tax Cuts and Jobs Act tax reform, starting in 2018, investment expenses will no longer be deductible on Schedule A as a miscellaneous itemized deduction. If you have an investment account and are paying fees to have it managed, those fees will no longer be deductible. This also means IRAs and other types of retirement account fees will not be deductible as well.
While individual taxpayers may no longer deduct investment fees and expenses on Schedule A starting, they are still entitled to deduct investment interest expenses, up to net investment income, as calculated on Form 4952.
Fees vs. Commission
Brokerage commissions are transaction costs deducted from sales proceeds and added to cost basis on brokers’ trade confirmations and Form 1099-B.
Tags: TaxTips, Tax, Income Tax, SanDiego, California, Investment Expenses, Schedule A, Form 4952