Are wire transfer cost deductible?

"bhata" wrote

It's not part of the cost of the stock sale, so it's a personal expense - no deduction.

If the earnings from the mutual fund and the bank account are both taxable, couldn't the wire fee be considered an investment expense related to interest and dividend income, deductible on Schedule A line 23?

(Disclaimer: not a tax pro.)

'Paul Thomas, CPA' wrote on 3/20/2009 10:05 AM:

rats... Thanks for the feedback Paul!

It does not strike me as related to the production of taxable income, so I'd say no. Besides the 2% rule makes the deduction pretty useless for most people, and it's not even allowed under AMT. If the mutual funds were owned by a company, like a S corp or C corp, then it would be fully deductible.

If this expense ends up on Schedule A for the individual, why doesn't it end up there, also, when it's paid by an S corporation? Seems to me the concept is that whatever happens in an S corporation is reported as if it were happening to the shareholder, and if the shareholder's got an itemized deduction for the wire fees, I would think the S corporation should report it as an itemized deduction, too. Is there some presumption of trade or business in an S corporation? I don't think so... But some people say that I pick at nits....

in article snipped-for-privacy@att.net, bhata at snipped-for-privacy@att.net wrote on

I think I would deduct it from the sales proceeds on schedule D as an expense of the sale. Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA Cincinnati, OH USA

in article vTPwl.18206$ snipped-for-privacy@bignews7.bellsouth.net, Paul Thomas, CPA at snipped-for-privacy@bellsouth.net wrote on 3/20/09 1:05 PM:

You know, I think your answer is correct. It was not required to sell the stock. I think it would be a "fee to collect income." If it cost you $25 to wire $300, I think that is pushing it and a foolish thing to have done. If it was $25 to collect $30,000, it seems quite appropriate to get the money. Unfortunately, these kinds of expenses get a 2% of AGI haircut at the bottom of the schedule A so it may be a moot point.

Uncompensated advice guaranteed correct or double your money back

Frank S. Duke, Jr. CPA Cincinnati, OH USA

It clearly does NOT belong on Schedule D as it's not instrumental in performing the sale.

Suppose on a buy, you need to wire the funds to get them there by settlement day. Investment expense on Schedule A line 23?