Maintenance Fee Charged By Offshore Bank

Feb 20, 2021 Last reply: 5 years ago 2 Replies

I am not a tax professional, but I file my own U.S. federal tax return.



I have an offshore bank account (properly disclosed to the IRS and FinCEN) that I use for personal expenses.



The bank pays a little bit of interest on the money deposited, but in the past six months has started charging a monthly maintenance fee.



I understand how to report the interest credited, but I am unsure if and where I can deduct the maintenance fee. And what if the maintenance fee is bigger than the interest credited?


As I understand it, bank maintenance fees on an account used only for personal expenses are not deductible. It doesn't matter if it is greater, less than or equal to interest earned.

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And you cannot offset the maintenance fee against the interest. You have to report the full amount of interest.

Bob Sandler

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