How to Claim Your Tax Deductible Advisory Fees

One of the benefits of working with a Fee Advisory firm is being able to deduct your annual Advisory Fees. To make sure you claim all your advisory fees on your taxes please use this formula and put your Total on your Federal 1040 under Miscellaneous Deductions. You will need both your “end of year” Trust Company of America (vertical) and your Matrix (horizontal) statements, dated 12/31, to finalize the calculations.

We have a fee report for each of your Trust Company of America (TCA) accounts for your reference. If you pay your fees with a credit card, your management fees do not show on this report – just the TCA administration fees. This is just for you to use to estimate your total fees. Please use each TCA SUMMARY OF ACCOUNT statement dated 12/31 and add up each Year-To-Date Custodian and Advisor Fees to confirm the correct amount of fees you paid during the calendar year.

$______________ Total TCA Advisory and Custodial Fees for all Matrix accounts

If you have a People’s Benefit annuity, you will go to your MATRIX CLIENT ACCOUNT DETAIL REPORT for each of your Variable Annuities, and locate the Year-To-Date Withdrawals, which will be your Annual Fees. If you withdrew additional monies, those amounts must be deducted from this total first.

$______________ Total Advisory Fees for all Peoples Benefit annuities

If you sold your Inland Real Estate Corporation stock, the costs incurred by placing the trade is deductible. You would either have paid a broker commission or a trade cost through TD Waterhouse. Check your brokerage account statement for these costs.

 $______________ Total Commissions/Trade Fees for all Inland Real Estate stock sales

Some Inland Sunbelt and all new Western REITS have 1% Advisory Fees that are taken from your dividends. Go to your dividend statements and total these numbers.

$______________ Total Advisory Fees for REITS

Add up all the personal checks you wrote to Wealth Advisors Group (WAG) for Wealth Coaching, Retirement Management, Oil & Gas, Real Estate Investment Trusts, TD Waterhouse, etc. where you paid the Registered Investment Advisor (RIA) fees directly. These you will find in your checkbook register. Most likely any check written to WAG is a deductible advisory fee.

$______________ Total Advisory Fees paid directly to WAG

Please add any other Advisory Fees paid to other entities: TD Waterhouse, Renaissance Administration for Charitable Remainder Trust (CRT) fees, etc. These fees you will find on your quarterly statements from those companies. Not all companies have end of year totals, so add up the quarterly statements if necessary.

$______________ Total Advisory Fees paid to others .

$_______________ Total Investment Advisory Fees

(This number goes on your 1040 Miscellaneous Deductions line.)