1099-B fees

[ILLMAS]

I haven't seen a 1099-B with fees in a while (was reporting on Sch A), but were do I report them in 2020 if allowed, TP paid a lot.

Thanks

MAS

[Lynn EA USTCP in Louisiana]

On the 1040 there's nowhere to report it; that deduction is suspended per TCJA til 2026.

 

[ILLMAS]

Thank you, just didn't want to miss out on deduction for my client, largest brokerage fee I have seen in my years of tax preparation.

[Lion EA]

Check the states, though. Not all are in lock-step with the TCJA.

[Slippery Pencil]

5 hours ago, ILLMAS said:

largest brokerage fee I have seen

How much?  And is there anything in the account to justify it?

[TAXMAN]

Saw one earlier today. 434 different sales some with only a 5 cent gain. fee excess of 10k. TP is not a broker and doesn't know how to read statements.

[ILLMAS]

TP sold over $200k in stocks, gain was like $7k, fees were around 1,500.  

[Slippery Pencil]

Just looked up a couple old returns.  One in 2017 $28K, one in 2014 $19K.

Current client has two accounts at Fidelity.  One fee is $7K the other is $16k.  When his employer was bought out, I think he received around $1.5 to $2 million and the advisor fees the next year were $21K. 

When I asked a guy I know at Raymond James, he said those Fidelity fees were in line with his.  He said, the fee is around 1.5% to 2%, 1% for accounts of $1.5 million and 0.9% if client has $3mm+.

[Slippery Pencil]

At first I thought the advisor for the client w/ the $28K fee in 2017 didn't have the fee listed on the 2019 1099, but I was wrong.  The fees were $25K in 2018 & $22K in 2019.

 

 

[ILLMAS]

13 hours ago, Slippery Pencil said:

At first I thought the advisor for the client w/ the $28K fee in 2017 didn't have the fee listed on the 2019 1099, but I was wrong.  The fees were $25K in 2018 & $22K in 2019.

 

 

Wow, my client paid peanuts compared to those fees.