Investment fees are a reality of Wall Street, whether you pay a registered investment adviser, broker, or a low-cost money management firm.
Those fees used to be tax-deductible. No longer. Nor are many attorneys’ fees, tax preparation and accountants’ fees, or unreimbursed employee business expenses.
“There’s a whole bunch of individual deductions that are just gone,” said Arthur Zatz, CPA with Isdaner LLC in Bala Cynwyd, Pa.
• Investment expenses: There may be an alternate way to pay that’s better than just writing a non-deductible check — deducting the fees from your balance instead. In an IRA, you can pay with pre-tax savings instead of post-tax cash, effectively preserving the benefit of the deduction, according to Ernst & Young. Ask your broker or money manager to help you set up your account. Safe deposit box fees and investment newsletters also are no longer deductible.