non-discount fee
>>you said on Oct 1 posting that if the account is tax free, the Legal fees are not deductible<<
Investment management fees are only deductible if the investment earns (or potentially earns) taxable income. In your case it does. The guardian can withdraw the principal tax free because (presumably) the money was a non-taxable injury settlement of some sort. So fees for obtaining the settlement and establishing the guardianship and so on are not deductible, but fees for buying and selling and otherwise managing the funds are deductible (or perhaps partly deductible if the guardian is using both taxable and tax-free investments. You might ask the attorney for a better breakdown, but he will charge you a hunnert bucks for such impertinance. As long as the fees seem reasonable, deduct them as investment expenses subject to 2% limitation.
By the way, this professionally managed estate can afford your own non-discount fee.
>>you said on Oct 1 posting that if the account is tax free, the Legal fees are not deductible<<
Investment management fees are only deductible if the investment earns (or potentially earns) taxable income. In your case it does. The guardian can withdraw the principal tax free because (presumably) the money was a non-taxable injury settlement of some sort. So fees for obtaining the settlement and establishing the guardianship and so on are not deductible, but fees for buying and selling and otherwise managing the funds are deductible (or perhaps partly deductible if the guardian is using both taxable and tax-free investments. You might ask the attorney for a better breakdown, but he will charge you a hunnert bucks for such impertinance. As long as the fees seem reasonable, deduct them as investment expenses subject to 2% limitation.
By the way, this professionally managed estate can afford your own non-discount fee.
Comment