Investment Advisor Fees

Forum|Forum|5 years ago
March 14, 2021
4 replies
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I have a managed account, a managed traditional IRA, and a managed Roth IRA. Should I enter the investment advisor fees for all of these accounts in the federal TurboTax (in hopes that they will port over to my state return)? Or does it depend on whether the account is tax-deferred or tax-exempt, plus whether the fee was paid out of the account or from elsewhere? Thank you in advance for any tips you can provide.

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Best answer by macuser_22

The 2017 Tax Cuts and Jobs Act eliminated that Federal deduction for 2018-2025, but it might still be a deduction is some states.

macuser_22Answer

Employee

The 2017 Tax Cuts and Jobs Act eliminated that Federal deduction for 2018-2025, but it might still be a deduction is some states.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

erica28Author

Thank you for your response, @macuser_22! From what I've been reading, I think my state is one of those that didn't conform to the feds.

tco0243

I have a local financial advisor I meet with in person, and gave a one-time payment to develop a financial plan. This is not the faceless investment management fees that are built into mutual funds etc you buy thru a broker. Can I deduct the payment to my financial advisor?

DaveF1006

These are no longer deductible from federal taxable income but some states do allow investment advisory fees to be deducted as itemized deductions if you are able to itemize on your state return. To enter:

Log into Turbo Tax
Go to Federal>deductions and credits
Retirement and investment
other investment expenses.

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jlbrown813

Hello, for state purposes do I enter all investment advisory fees or just those related to taxable investment accounts. My advisor breaks them out so wondered if I can only include the fees related to taxable accounts.

mitzeljh

I cannot enter Investment Advisor Fees as a deduction because the entry box is grayed out (2021 Turbotax deluxe for desktop). I should be able to enter it because CA still allows the deduction.

FangxiaL

Here is how to enter Investment Advisor Fees on federal return which will carry over to your CA state return:

Within federal taxes:

Go to Deductions & Credits, then Retirement and Investments section
Click Start next to Other Investment Expenses
On next screen, select Enter my expenses
On next screen, you will be able to enter the amount of investment advisor fees.
When you enter this, your investment expenses will appear on your Schedule CA form.