Investment Fees Income Tax Question

by Nick
(Dallas, Tx)

Investment Fees Income Tax Question

Investment Fees Income Tax Question

I pay an advisory fee to manage a portfolio of investments, mainly stocks, and the fees are based on the value of the portfolio.

Annually I get a summary of the gains and losses on that stock portfolio, and I have been including the fees as an addition to the cost basis of my stocks, thus lowering the gains or increasing the losses on the sales transactions during the year.

Is this the proper way to handle investment advisory fees. The fees from the advisory are titled: Transaction/consulting/management fees.

Comments for Investment Fees Income Tax Question

Average Rating starstarstarstarstar

Click here to add your own comments

Jan 20, 2024
Rating
starstarstarstarstar 		How to Handle Investment Advisory Fees
by: BB

Yes, your approach of adding advisory fees to the cost basis of your stocks is generally correct. When determining the capital gains or losses on the sale of investments, you can include transaction and advisory fees as part of the cost basis. This helps in reducing the overall taxable gains or increasing the deductible losses.

However, it's advisable to consult with a tax professional to ensure you are following the correct procedures based on your specific circumstances and the most recent tax regulations.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.

Investment Loss

by Ellen
(Yarley, PA)

We lost $30,000 in an investment and told there was not a write off for this. Is this true.

Comments for Investment Loss

Average Rating starstarstarstarstar

Click here to add your own comments

Jan 20, 2024
Rating
starstarstarstarstar 		Tax Deductions for Investment Losses
by: BB

Unfortunately, not all investment losses are tax-deductible. Whether you can write off a loss depends on the type of investment and other factors. Generally, losses from the sale of personal assets like your home or car are not deductible. However, losses from certain types of investments, such as stocks or real estate, may be deductible against gains in the same category.

It's crucial to consult with a tax professional to assess your specific situation and determine the tax implications of your investment loss.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Income Tax Questions.


Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you every month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.

Enter Your E-mail Address
Enter Your First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Bookkeeping Basics E-Zine.

Like Bookkeeping-Basics.net?