In a taxable personal account can you deduct the funds annual management expenses (the .5%,12b,etc..) as an expense against your gains? Like fee’s on .

 

  • badjuju 12:37 pm on August 19, 2010

    "Enter the total amount you paid to produce or collect taxable income….." on line 23 of schedule A. "Examples of expenses to include on line 23 are……your share of investment expenses of a regulated investment company."

    Miscellaneous itemized deductions exceeding 2% of your AGI (line 38 form 1040) are deductible. See 1040 schedule A and the instructions.

    Your brokerage fees should not reduce your 1099s. If that was what the IRS intended then you would be able to deduct them directly from your income on page 1 of the 1040 or from schedule B income, for example.

  • Michael R 12:37 pm on August 19, 2010

    I am not sure. But I want to say no. Just like lawyer fees are non deductible.

    Anyway you don’t have to claim a gain unless it’s a realized gain which means you took your money out of the fund.
    On the other hand you would have to pay tax on any dividends/interest paid to you. Usually you will get a 1099-DIV sent to you.

  • CarVolunteer 12:37 pm on August 19, 2010

    No, because they are deducted before you get the income from the fund. The amount on your 1099 includes only the income you actually received, which is after any expenses or load.

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