Investment management fees and financial planning fees could be taken as a miscellaneous itemized deduction on your tax return, like tax preparation fees, but only to the extent that they exceeded 2% of your adjusted gross income (AGI).

Can investment management fees be deducted in 2019?

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your invest- ments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

Are there any tax deductions for investment management fees?

The tax deductible treatment of IRA and 401k fees is a bit different. If financial advisor or investment manager fees are deducted directly from an IRA or 401k, the fees are effectively paid with 100% pre-tax dollars. Essentially, they’re deductible without even deducting them.

Are there any tax deductions for mutual fund fees?

Investors in mutual funds and wrap investment programs pay fees for investment advice and management services. The fees in either of these investment arrangements may be deducted for income tax purposes as a carrying charge. However, there are a number of important qualifications that must be kept in mind when considering each individual case.

Is there a tax deduction for managing a municipal bond portfolio?

The “income” must be taxable so the IRS can get their portion. Muni bonds generate tax free income (sometimes at the state, federal and local level). Fees paid for managing a municipal bond portfolio are therefore not deductible. Are your investment management fees tax deductible? Or not?

Do you pay investment fees directly or indirectly?

What follows is an example of the tax and investment consequences for an individual at a 45% tax rate who pays investment fees indirectly or directly. The first column assumes an investor is paying fees inside a mutual fund (indirectly). The second assumes the investor has a separately managed account and the payment is outside a fund (directly).