Expense The fee goes on your 1040 Schedule A as Investment Expense
ed
Of course, if any of this advice involved tax exempt Munis, that portion of the fee is not deductible.
-- ArtKamlet at a o l dot c o m Columbus OH K2PZH
I would say no and that it is a personal expense. My financial plan assures me that I have adequate funds till age 100, adequate for travel and in home nursing care, should that ever be needed. It has nothing to do with investments, except outlining the type of investments. Now if I were to hire someone to draw up a plan for buying certain investments to maximize lifetime earnings, then yes. But that would be moot for me, since I don't itemize deductions anyway. It's the purpose that counts.
ChEAr$, Harlan Lunsford, EA n LA
To the extent that a financial plan is to preserve and protect income, and to help manage taxes, it should be deductible. When I do an estate plan I tell the client what proportion of the cost went into tax planning (as opposed to simple estate planning) and they get to deduct that amount. Stu
Thanks for the comments. In my case, the financial plan would be almost (if not entirely) exclusively asset management strategy, perhaps tax issues. Does everyone agree on the comment that if a portion of the plan, either the strategy or the ongoing yearly charge, involves tax free income, one would have to somehow come up with a formula for prorating both the plan fee and the management fee? How in the world would one be able to do that?? I do itemize extensively because of high medical deductions and state and local taxes I understand the limit on investment expenses deductibility percentage, but good thing you reminded me because forgot about it and need to calculate that into the equation. jo
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