Question
Investment advisors typically charge an annual fee for their services, based on the amount of money of the client that they manage. The Tax Court
Investment advisors typically charge an annual fee for their services, based on the amount of money of the client that they manage. The Tax Court has ruled (see Dolin v. Commissioner, 54 TCM 1448 (1988); see also Reg. Sec. 1.67-1T(a)(1)(ii)) that annual fees paid to investment advisors to make recommendations as to which stocks to buy and which to sell can be deducted, as opposed to being capitalized into the cost of the stocks. Do you agree with the ruling? Why or why not?
NOTE: to consider Trade and/or Business Expenses - to consider 26 U.S. Code section 162 (a)
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