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February 25, 2020
Question

Can I deduct investment expenses, such as the cost of my investment advisor, on my 2019 California Income Tax return?

  • February 25, 2020
  • 2 replies
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    2 replies

    DaveF1006
    February 25, 2020

    According to this Turbo Tax link, investment fees are deductible in California. here is how you will claim them

     

    1. log into your turbo Tax return
    2. Select state in the left navigational pane in your program  Select state
    3. If California is not selected, add state and select California
    4. As you navigate through the questions you will arrive at a screen that says  Here's the income that California handles differently
    5. Go to Investments>Investment Income Expenses
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    March 16, 2020

    How do I calculate them? cause I have to eliminate the US Government bond portion?

    March 16, 2020

    Only your manager of the portfolio that has the US government bonds can tell you what part of the investment fees applied to the bonds and what part did not.

     

    If you can't get an answer, you might try some formula on allocation by percentage of taxable versus nontaxable bonds. Write down what you do, in case the state of California asks.

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    September 22, 2021

    For the first time, I am encountering  this elimination of the "investment  advisory  fees"  as a Schedule  A Miscellaneous deduction.  All the  TT posts  I see  talk about  possibly still being able to take  that deduction on a  CA  state return, which does not apply to me. 

    Question:  Is there any other way to still take this deduction on a  federal 1040 return?  Seems intuitive that this should  be able to be taken as a straight reduction of the  income generated through  the advisor's input; but I am  wary of making any adjustments to  the income amounts  reported on my Forms 1099-DIV  and  1099-B.

    For the  record, I am self-employed and file  Sched. C. But  I am in process of retiring and my self-employed income is rather low in recent  years. Also my investments are  not really connected to my self-employment, except that they provide me with needed additional income. 

    VolvoGirl
    September 22, 2021

    Sorry,  See Deductions that have been suspended for 2018-2025 under Other Misc Deductions subject to the 2% limit

    https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-by-tax-reform/00/25565