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Tax Deductions for Financial Advisor Fees

U.S. News & World Report

The Tax Cuts and Jobs Act of 2017, commonly referred to as TCJA, eliminated the deductibility of financial advisor fees from 2018 through 2025. A few years into the act, many advisors report the consequences had minimal impact on their business, but that could change as the market environment becomes less generous in its returns.


The tax code has a special rule that allows trusts to deduct ... expenses in full provided the expense is unique to the trust and would not be commonly or customarily incurred by an individual, says Sean Weissbart, a partner at Blank Rome and an adjunct professor of law at New York University School of Law.

If an advisor provides specialized advice to the trust that goes above and beyond what is traditionally provided to individuals, this extra portion may be deductible to the trust, he says.

"Tax Deductions for Financial Advisor Fees," by Coryanne Hicks was published in U.S. News & World Report on April 24, 2020.