Are investment management fees tax deductible?

Here’s an illustration: Let’s say your client has an AGI of $250,000. If they spent more than $5,000 – equivalent to 2% of their AGI – on investment management fees, the excess amount can be deducted from their tax returns. So, if they paid $6,500 in fees during the tax year, the exceeding $1,500 would have qualified them for a tax break.

Are portfolio management fees tax deductible?

Let’s say your AGI was $150,000. If you paid more than $3,000 – or 2% of your AGI – in portfolio management fees, you could deduct the excess amount from your tax returns. If you paid $4,000 in fees during the year, for instance, the exceeding $1,000 would have been tax-deductible. Some experts say that there’s a way around it.

Are financial advisor fees tax deductible?

No, they aren’t – at least not until 2025. The Tax Cuts and Jobs Act (TCJA) enacted major changes to what investors can and cannot claim on their tax returns. Among the most notable omissions are financial advisor fees. But while the Act eliminated deductions on most investment-related expenses, there are a few that remain eligible for tax breaks.