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Is A Horse Not A Horse When Entities Incur Investment Advisory Fees?

Journal of Passthrough Entities

An individual that incurs these fees will deduct these as a miscellaneous itemized deduction (MIDs) — deductible only to the extent that they exceed 2% of a trust’s adjusted gross income (AGI), often referred to as the “2%-of-AGI floor.” The issue involves whether an entity that incurs these fees — in this case trusts– changes the nature of the expense from an MID to an above the line business deduction.

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