Investment advisor fee and IRA custodial fee questions for California 2020 tax return.

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May 15, 2021
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All investment advisor fee and IRA custodial fee questions below are for California 2020 tax return.

Are investment advisor fees on a Roth 401k deductible on 2020 CA state taxes?

Are IRA custodial fees deductible on 2020 CA state taxes for:

IRA

Roth IRA

401k

Roth 401k

403b

457

Thank you

Best answer by hbl3973

Laurence,

Investment advisory fees are deductible as 2% miscellaneous deductions on your CA tax return only for fees related to taxable income. So, no, those for retirement accounts are not deductible.

It also gets a bit tricky if you have a mix of taxable and tax-exempt properties in a brokerage account. You then need to deduct only the percentage that was related to the taxable portion by, say, using the Dec 31 values of the portfolio entries to come up with that percentage.

hbl3973Answer

Employee

Laurence,

Investment advisory fees are deductible as 2% miscellaneous deductions on your CA tax return only for fees related to taxable income. So, no, those for retirement accounts are not deductible.