Showing posts with label quality financial help. Show all posts
Showing posts with label quality financial help. Show all posts

Friday, June 2, 2017

Enjoy a Deduction Just for Getting Good Advice

More often than not, smart people who want to make smart choices with their money will choose to pay for expert financial advice and help. This payment might come in the form of investment management fees or financial planning fees, to name a couple.   


The good news, however, is that this is certainly not money spent in vain. First of all, as long as you’ve hired quality financial help, you’re likely to have better managed finances and investments, which should help your money to go further. Furthermore, many of these “money management” fees that you’ll pay are tax deductible.

In many cases, money management fees can be counted as miscellaneous itemized deductions, helping you to save on your tax return. The only stipulation is that you can only deduct to the extent that these fee exceed 2% of your adjusted gross income. As such, this may mean that you can’t deduct all of your money management fees, but really, being able to deduct something is always better than nothing!

If you don’t quality for a basic deduction as described above, don’t worry; you still have other options for saving big! If, for example, the fees you’ve paid are structured as a percentage of your assets, you can pay for fees out of the correlated account, which will likely be counted as a tax-free withdrawal. Of course, this can vary from one type of account to the next, but if your account qualifies for tax-free withdrawals, go for it!


Even if none of these options apply in your situation and with your specific fees, many accountants and other professionals know special loopholes and other legal ways to save you money or save you from spending any of your own money on money management fees, so definitely don’t hesitate to ask. After all, what’s the point of having a financial professional on your side if you can’t get advice when you need it!?