Over the years I have ignored exposure fees when it comes to filling out my taxes. I never have deducted them. They do list them in Form 1099 under "Other Useful Information" as "Other Fees Paid" but do not furnish them to the IRS. So can these fees be deducted? or is is just the cost of doing business with IB.
Well I don't deduct them because it's not a routine expense as you don't always incur them. It's kinda like a penalty charge. I think you are only allowed to deduct routine expenses that you would incur in buying and selling securities. Better to consult your tax lawyer or accountant to be sure.