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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: Foliofn fees Date: 11/6/2000 5:24 PM
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<<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
Roy

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