From Yahoo Finance: 2025-04-12 08:30:00

Financial advisor and tax preparation fees were previously deductible, but the Tax Cuts and Jobs Act of 2017 eliminated this deduction. Miscellaneous deductions, including financial advisor fees, tax preparation fees, and others, worked based on a 2% rule, allowing deductions above 2% of AGI. However, under current law, individuals cannot claim these deductions.

The Tax Cuts and Jobs Act is set to expire in 2025, potentially bringing back individual miscellaneous deductions. However, it is likely to be extended, meaning that individuals may not be able to deduct financial fees moving forward. Financial advisors can help navigate changing legislation and tax planning strategies.

Individuals who pay fees to financial advisors cannot deduct them from taxes. This deduction was available before the 2017 tax law changes and may return if the law is not extended in 2025. While this deduction is not currently available, there are other finance-related deductions individuals can claim.

A financial advisor can assist in building a comprehensive retirement plan and maximizing income and savings impact. It is essential to keep an emergency fund for unexpected expenses in a liquid account. Financial advisors can help individuals achieve their financial goals and navigate tax changes effectively.



Read more at Yahoo Finance: Can I Deduct the $4,500 I Paid My Financial Advisor This Year?