Author Topic: Bluevestment Fees Tax Deductible  (Read 3123 times)

jameslend

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Bluevestment Fees Tax Deductible
« on: April 15, 2017, 02:44:39 AM »
Bluevestment isn't a SEC Registered Investment Advisor to my knowledge.

I'm using it for an ROTH IRA account. Are the fees tax deductible?

Fred93

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Re: Bluevestment Fees Tax Deductible
« Reply #1 on: April 15, 2017, 02:58:28 AM »
Bluevestment isn't a SEC Registered Investment Advisor to my knowledge.

I'm using it for an ROTH IRA account. Are the fees tax deductible?

You've given us two facts.  I will discuss them separately.

"isn't an RIA"...
There's nothing in the IRS regulations that relates RIAs to deductions.  It doesn't matter.

"for a Roth IRA account"
While most investment expenses are deductible, if the expenses produce tax-exempt income, then they are not deductible.  Income generated in a Roth IRA account is tax-exempt, hence the expenses are not deductible.

Investment expenses fall under the "Miscellaneous deduction" on schedule A.  You can download a booklet from the IRS which explains what qualifies and what does not ...

The booklet is titled "Miscellaneous Deductions".
https://www.irs.gov/pub/irs-pdf/p529.pdf

For example, on page 16, it says...
You  can't  deduct  expenses  to  produce  tax-exempt  income.

jameslend

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Re: Bluevestment Fees Tax Deductible
« Reply #2 on: April 15, 2017, 02:34:09 PM »
Bluevestment isn't a SEC Registered Investment Advisor to my knowledge.

I'm using it for an ROTH IRA account. Are the fees tax deductible?

You've given us two facts.  I will discuss them separately.

"isn't an RIA"...
There's nothing in the IRS regulations that relates RIAs to deductions.  It doesn't matter.

"for a Roth IRA account"
While most investment expenses are deductible, if the expenses produce tax-exempt income, then they are not deductible.  Income generated in a Roth IRA account is tax-exempt, hence the expenses are not deductible.

Investment expenses fall under the "Miscellaneous deduction" on schedule A.  You can download a booklet from the IRS which explains what qualifies and what does not ...

The booklet is titled "Miscellaneous Deductions".
https://www.irs.gov/pub/irs-pdf/p529.pdf

For example, on page 16, it says...
You  can't  deduct  expenses  to  produce  tax-exempt  income.

Hi Fred,

Thanks for the link and info. It's clear to me now.

thanks.
-james