Q: Can I deduct my investment expenses as business expenses?
A: “In general, no,” said Marion Thompson, certified public accountant and member of Maryland Society of Accountants. “Investment expenses are deductible on Schedule A ? Itemized Deductions as a miscellaneous expense.”
Investment expenses could include professional fees incurred to produce or collect taxable income, fees for investment advice, books or magazines dealing with investments or taxes, tax preparation fees or custodial fees for retirement plans if the fee is paid with funds outside the plan, said Robert Davies, with the Maryland Society of Accountants.
But they are deductible only if the total miscellaneous deductions exceed 2 percent of the taxpayer?s adjusted gross income.
Expenses incurred to produce tax-exempt income are not deductible, he said.
In addition, fees charged for the specific trade of a stock or bond would be reported as a part of the purchase or sale of that specific issue, Thompson said.
