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Posted by Stuart Bronstein on August 18, 2007, 2:07 am
Please log in for more thread options > jo wrote:
>> 1) Is the cost of preparing a financial plan fully
>> deductible as an investment expense? (It would not deal
>> with anything other than investments, if that matters)
>>
>> 2) Would the fee charged to managed an investment portfolio
>> be deductible as an investment expense?
> I would say no and that it is a personal expense. My
> financial plan assures me that I have adequate funds till
> age 100, adequate for travel and in home nursing care,
> should that ever be needed. It has nothing to do with
> investments, except outlining the type of investments.
>
> Now if I were to hire someone to draw up a plan for buying
> certain investments to maximize lifetime earnings, then yes.
> But that would be moot for me, since I don't itemize
> deductions anyway.
>
> It's the purpose that counts.
To the extent that a financial plan is to preserve and
protect income, and to help manage taxes, it should be
deductible. When I do an estate plan I tell the client what
proportion of the cost went into tax planning (as opposed to
simple estate planning) and they get to deduct that amount.
Stu
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