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February 10, 2025
Question

If you are subject to investment income tax of 3.8%, and are allowed to deduct investment expenses like investor advisor fees, investment interest, where do you enter?

  • February 10, 2025
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    1 reply

    February 10, 2025

    Investor advisor fees are not deductible on your federal return, unless you are a trader reporting your trading activity on Schedule C as self-employment income.  Interest expense is dedutible as an itemized deduction on Schedule A.  To enter it, while in your return:

     

    • Click on Tax Tools on left hand side of page
    • Click on Tools
    • Click on Topic Search
    • Type in "Investment Interest"
    • Answer Yes to Do you have 2024 Investment Interest expenses or 2023 carryovers?
    • Enter descriptions and amounts

    If your state allows a deduction for Investment Advisor Expenses, repeat the steps above, but enter "Investment Advisor Expenses"

     

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