Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<<Let me ask this: if the Foliofn fees are deductible as an investment expense, would any of the fees I pay to a mutual fund company (say the 1% management or 12-b1 fees) be deductible too?>>

I just quickly reviewed the Foliofn site, and based upon what I see, I would agree with JAB...these would not be commissions (which are added to cost basis or deducted from sales price of the shares), but instead would be a "fee" that would be reported on Sch A as a miscellaneous itemized deduction, subject to the 2% floor.

Which means that many people would not receive any tax benefit since the fee would not be greater that the 2% requirement (assuming no other miscellaneous itemized deductions, of course). Your personal mileage may vary.

With respect to the mutual fund fees, they are a built in component of the purchase or sale. That being the case, they can NOT be treated as "fees". Instead, because they are "built in" you simply maintain your mutual fund cost basis on the amount that you paid for the shares.

Hope this helps...
TMF Taxes

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.