I have an account with an on-line broker. My investments on the platform pay me dividends and interest on uninvested cash. I'm charged a fixed monthly fee to maintain the account. How should these fees be reported in my Form 11? Do I net them against the interest received?
Tax treatment of broker account maintenance costs
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AAAContributor
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These fees are not reported on Form 11.
No.
There is no provision in the tax legislation to expense account maintenance fees against investment income (dividends and interest) for the purposes of income tax.
The fees are not allowable either for capital gains tax purposes.
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Stockbroker fees' relief I have a query regarding the tax treatment of stockbroker fees
AAAContributor
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You're correct. Section 97(2)(d) TCA allows such a deduction against rental income.
Alas, there's no statutory basis (or Revenue concession as far as I am aware) for broker account maintenance fees in this scenario.
There could be tax deductibility if you were carrying on a trade (read 'business') in dealing securities; but as it's more likely the activity is for investment purposes, this would not apply.
DazedInPontoon
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If this fee is actually enough to matter I'd consider moving to a cheaper broker, how much are you paying per month?