Are the Interactive Brokers "Other fees paid" deductible Investment Expenses?

Discussion in 'Taxes and Accounting' started by samovar, Jul 28, 2022.

  1. samovar

    samovar

    On its consolidated Form 1099-B, IB lists four items. Which of these are deductible?
    1. "Margin Interest Paid" - this is deductible for sure, per TurboTax on the "Investment Interest Expenses" page
    2. Payment in Lieu Paid - no idea what this is, but it's 0 anyway
    3. Advisory Fees Paid - same
    4. Other Fees Paid - this is over $1k. What are these fees? Market data?
    TurboTax has a page for "Investment Expenses, other than interest expenses".

    Can someone confirm whether these "Other fees paid" are deductible and where, ideally by citing a source?
     
  2. TheDawn

    TheDawn

    Better check with IB to confirm what are those expenses exactly. Whether they are deductible or not would depend on what those expenses are, that would be my guess.
     
    Last edited: Jul 29, 2022
  3. 1. Yes, although depending on your filing status it may be limited

    2. This is being short dividends or similar. Probably it should be capitalized into the trade it originated from (possibly depending on holding period), although otherwise it may be deductible depending on your status.

    3. No longer deductible.

    4. likely market data, position transfer, funds transfer, ADR fees, and the like. You probably need to file as a trading business of some sort for these to be deductible.
     
  4. samovar

    samovar

    IB said they're mostly market data fees, and details can be found on the annual statement. Predictably, they wouldn't advise whether they're deductible or not.