Thanks for the comments. In my case, the financial plan
would be almost (if not entirely) exclusively asset
management strategy, perhaps tax issues.

Does everyone agree on the comment that if a portion of the
plan, either the strategy or the ongoing yearly charge,
involves tax free income, one would have to somehow come up
with a formula for prorating both the plan fee and the
management fee? How in the world would one be able to do
that??

I do itemize extensively because of high medical deductions
and state and local taxes I understand the limit on
investment expenses deductibility percentage, but good thing
you reminded me because forgot about it and need to
calculate that into the equation.

jo

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Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

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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ed <edcos...[at]sbcglobal.net> wrote:
- quote -

Note that these Schedule A deductions are subject to the 2%
of AGI limitations.

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jo wrote:

- quote -

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.

ChEAr$,
Harlan Lunsford, EA n LA

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ed <f9r3nd$14o$1[at]panix2.panix.com> wrote:
- quote -

Of course, if any of this advice involved tax exempt Munis,
that portion of the fee is not deductible.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

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jo <phillysle...[at]verizon.net> wrote:

- quote -

Expense
The fee goes on your 1040 Schedule A as Investment Expense

ed

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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?

Thanks

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