IRA investment expense deductions
Hello,
I spend a considerable amount of time looking after my retirement and other equity investments. They are mostly Roth/EdIRA and 457 accounts. I subscribe to investment advisement webinar and software subscriptions. I use computers via the internet and have set up a home office to work and store materials. I also use my cell phone to track the market and trade while on the road or between meetings at work.
My Roth IRAs had been profitable and I cashed them to pay for our children’s education.
What can I do to recover these costs and offset the profits?
Thank you very much in advance for your help.
Tom…
Permalink Submitted by mk foss on Wed, 2012-03-28 17:09
IRS has ruled that fees to maintain an IRA paid with outside funds can be deducted on Schedule A as a miscellaneous deduction subject to the 2% limitation. Many investors deduct investment subscriptions and publications in this same section of the return. This is where fees paid to an investment manager would also appear. Quite often an individual investor with just IRAs and Roth IRAs will not incur enough expense to exceed the 2% limitation and if they do those expenses are an “add back” for alternative minimum tax purposes. If you don’t benefit on your federal return, there may be a state tax benefit from claiming the deductions. I’d summarize and report them if I were you.
Permalink Submitted by Thang Ho on Wed, 2012-03-28 19:28
Hello,
I take the standard deduction. My subcription and advisor fee expense is just at 2% of AGI. So this is not useful. Wondering if the cost of computer and home office are allowed deduction – solely for the purpose of directing IRA / investments?
Thanks again.