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March 30, 2025
Question

Do account management fees qualify as miscellaneous investment expenses on form 8960 line 9c? If yes, where do I enter these expenses?

  • March 30, 2025
  • 2 replies
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    2 replies

    March 30, 2025

    On form 8960, miscellaneous investment expenses on line 9c can be deducted only to the extent these items are deductible in Schedule A. As the new tax law has suspended the itemized miscellaneous deduction, these expenses are not deductible on form 8960 either.

     

    Please see these IRS instructions for form 8960, especially on page 19.

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    March 30, 2025

    NO. here are line 9c instructions

    Line 9c—Miscellaneous Investment Expenses
    Investment expenses you incur that are directly connected to the
    production of investment income are deductible expenses in
    determining your net investment income. Generally, these
    amounts are reported on Form 4952, line 5. See Form 4952 for
    the instructions for line 5 for more information. The amounts
    reported on line 9c are the amounts allowable after the
    application of the deduction limitations imposed by sections 67
    and 68.

     

    4952 line 5 instructions

    Line 5
    Investment expenses are your allowed deductions, other than interest
    expense, directly connected with the production of investment income.
    For example, depreciation or depletion allowed on assets that produce
    investment income is an investment expense.
    Include investment expenses incurred directly by you or reported to
    you on Schedule K-1 from a partnership, or by an S corporation, but
    only if you are allowed a deduction on your return for the expense.

     

    The TCJA of 2018 (in effect through 12/31/2025 unless extended) affect the deductibility of investment management fees. The law doesn’t allow deductions of investment management fees and other related expenses. These include:

    Financial advisor fees
    Custodial fees for individual retirement accounts (IRAs) and other investment accounts
    Accounting costs
    Fees paid for legal counsel and tax advice
    Rental fees for a safe deposit box
    Investment publication subscription costs