Tax questions

April 07, 1999

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Are fees charged by a bank's trust department, and those of an investment manager, deductible (over 2 percent of adjusted gross income) if applied to an IRA account? While the account is not being redeemed now, those funds will be taxable when withdrawn.

Expenses related to investment income or property, such as investment counsel or advisory fees (IRAs fall under this area), are deductible as miscellaneous itemized deductions subject to a limitation of 2 percent of adjusted gross income, if the fees are paid with assets outside the IRA. If the fees are paid with assets inside the IRA, they are not deductible.

Frank Savarese, CPA, Weyrich, Cronin & Soora

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

Pub Date: 4/07/99

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