Are investment management fees tax deductible in 2022? The answer to this question depends on the December 2017 Tax Cuts and Jobs Act (TCJA) and the specific fees associated with an investor’s portfolio. Under the TCJA, research and development (R&D) expenses are no longer deductible for the 2022 taxable year, while the immediate income tax deduction of up to 30% of adjusted gross income (AGI) is still in place. This means that while certain fees associated with investment management may be deductible, they must meet specific criteria to qualify.
ACNB CORP MANAGEMENT’s DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS for 2022 states that taxable securities represent 1.90% of total investments, and that 516,126 of their investments are tax deductible. This is significantly less than the 5,423 investments that are non-deductible, indicating that the majority of their investments are not tax deductible. However, it is important to note that the December 2017 Tax Cuts and Jobs Act does not affect ACNB CORP MANAGEMENT’s investments, as the Act only applies to R&D expenses.
Let us also look at the Management's Discussion and Analysis of Financial Condition and Results of Operations for ELASTIC N.V. for 2022. This document states that professional fees, accounting fees, audit fees, and tax advisory fees are non-deductible expenses. This means that any fees associated with investment management, including those related to taxes, are not eligible for tax deductions in 2022.