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You are here: Tax FAQ > Income/Deductions >

Are fees charged by a financial adviser as a percentage of assets under management tax deductible?

Fees paid for investment advice to produce taxable income can be deductible. If your IRA is a traditional account, you can include that cost. If it were a Roth, however, the fees allocable to the pursuit of tax-free income wouldn't count.

Remember, investment fees are a miscellaneous itemized expense, so they're deductible only to the extent that your total miscellaneous expenses exceed 2% of your adjusted gross income. If you're among the growing number of victims of the alternative minimum tax, such expenses are not deductible at all.


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