skip to main content
X

TAX DEDUCTIONS FOR FINANCIAL ADVISOR FEES

TAX DEDUCTIONS FOR FINANCIAL ADVISOR FEES

The Tax Cut and Jobs Act has mostly eliminated the deductibility of financial advisor fees through 2025, and those affected are beginning to notice as strong investment market returns are correlating with an increase in these fees. Despite this, partner F. Michael Zovistoski noted that it is not all bad news for those hoping to take a deduction.

"For individuals who are currently paying large investment management fees and are truly obsessed with finding a way to make the investment fees tax-deductible, a renewed consideration should be given to investing in loaded, commission-based, actively managed mutual funds," said Zovistoski."When the mutual fund is ultimately sold, the commission is included in the cost basis, which in turn reduces the gain on the sale, again indirectly making the sales commission deductible."

Trust and business accounts also have a little lee-way under the current system."To the extent investment fees relate to business assets or a business purpose and are paid by the business, those fees continue to be deductible by the business," Zovistoski explained.

The other way to make the fees deductible is if a business owner is addressing specific business issues, such as succession planning, "those fees can be invoiced separately and paid by the business," he said.

 

Read the full article published by U.S. News & World Report.

HAVE A QUESTION?

Please complete this form to hear from Michael Zovistoski.

Hide Firm Disclaimer

©2022 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.