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Investment Expense rules for 2018
Old 02-24-2018, 08:10 PM   #1
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Investment Expense rules for 2018

Hi folks,

From what I can tell the investment interest deduction remains the same (good thing), are there any other changes to be aware of in terms of investment deductions?

Management fees still deductible right?

I'm hearing some ramblings that the new changes have an adverse impact, but unsure if related to SALT or something more intrinsic to investments.
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Old 02-24-2018, 10:55 PM   #2
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I think those items are miscellaneous items subject to a 2% floor deducted on Schedule A. The recent tax law increases the standard deduction. This means that even though you in theory can still deduct these expenses, you have a higher bar to it mattering: you have to have in excess of 2% of AGI *and* the sum of those deductions plus your others needs to exceed the higher standard deduction.
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Old 02-25-2018, 04:56 AM   #3
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Quote:
The recent tax law increases the standard deduction. This means that even though you in theory can still deduct these expenses, you have a higher bar to it mattering: you have to have in excess of 2% of AGI *and* the sum of those deductions plus your others needs to exceed the higher standard deduction.
+1. Last year, when doing our taxes, for the first time in decades we did not have enough deductions to itemize, and this year would have had even less. It sure makes the tax prep go faster.
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Old 02-25-2018, 07:35 AM   #4
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The investment-expense deduction goes away in 2018.

The investment-interest deduction is retained.
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Old 02-25-2018, 09:51 AM   #5
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Originally Posted by Onward View Post
The investment-expense deduction goes away in 2018.

The investment-interest deduction is retained.


This is what our CPA told us. He said tax preparation fees will also no longer be deductible.
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Old 02-25-2018, 11:24 AM   #6
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ALL Misc Itemized Deductions subject to the 2% limitation are gone for 2018-2025.

Tax prep fees, publications/journals, investment expenses such as investment advisory fees, unreimbursed business expenses (uniforms, union dues, mileage, etc) are gone.
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Old 02-25-2018, 02:19 PM   #7
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So deducting investment advisory fees goes away. Good to see the interest aspect stayed.
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