November 30, 2020
All Tax Articles

If you own investment properties, such as stocks, bonds, and mutual funds, you will likely incur some investment fees. Some of the fees are deductible for income tax purposes. Some are not.


Deductible fees include those paid fees for the management and custody of your investments. However, such fees in connection with a tax-deferred plan, such as your registered retirement savings plan, registered retirement income fund, or tax-free savings account, are not deductible.


Investment counsel fees are normally deductible. However, the fees must be paid to a person the principal business of which is advising as to the advisability of purchasing or selling specific shares or securities, or includes the provision of services in respect of the administration or management of shares or securities. 


Commissions paid for the purchase or sale of securities are not deductible. Instead, if paid on a sale they reduce any capital gain or increase any capital loss, or on a purchase are added to the cost of the securities. (However, if you trade very actively, the commissions are fully deductible as part of the business income or loss calculation.)


Safety deposit box fees are not deductible under any circumstances, even for a business.

This letter summarizes recent tax developments and tax planning opportunities from a third-party affiliate; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this blog post, which are appropriate to your own specific requirements. Please feel free to get in touch with Lee & Sharpe to discuss anything detailed above, we would be pleased to help.
Douglas K. DeBeck

Hello, my name is Douglas K. DeBeck, I am a partner at Lee & Sharpe.

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