Commission on IRA Trading

I want to clairify these commissions were from managing the account (about $2K). Buying and selling to change the portfolio allocations. I am not talking about the commissions charged on the initial contribution to the IRA which would be deductible as part of the contribution...and therefore not deductible as a miscellaneous itemized deduction.

Not if you pay for them out of funds within the IRA. There are no tax consequences to transactions within an IRA, only contributions or withdrawals.

I have always deducted IRA Custodial fees as a misc. itemized deduction subject to 2% AGI. These are paid from "within" the IRA, but still deductible. This client is 70 years old and activly managing his IRA. I guess I am trying to consider the commissions as "trustee administrative fees" that are billed separatly and paid from the account.

Can't do that. But if you do, at least be consistent and claim the fees you deduct as a taxable IRA distribution.

wow! paid from "within" the IRA but still deductible? First I've heard of this. In fact it's just not true as others will chime in I'm sure. To be deductible these admin fees must be paid separately.

ChEAr$, Harlan Lunsford, EA n LA