Wednesday, April 23, 2014

Tax Tidbit: Deductibility of Advisor Fees

At Continuum II Inc. we are always striving to keep you up to date on news and information.   At this time of year, we thought you might be interested in this tax tibit. 

When it comes to the deductibility of advisor fees it is important to know what you can and can not do. 

Here are just a few points to keep in mind when it comes to the deductibility of advisor fees:

  • You can deduct fees only when the advice is for investment counsel

  • MERs are never tax deductible, regardless of whether they are  bundled or unbundled.
F class operates a little different,  the MER charged by the fund company is not deductible, BUT the advisor portion might be.

  • The fees paid for general financial planning advice is NOT tax deductible. You must indicate specifically that the fee was for investment counsel advice.

If you have any further issues or questions when it comes to deductibility please do not hesitate to contact the Continuum II Inc. team. Be sure to check out our website, there you will find more information, tips and resources.

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