1120S Ameritrade Acct (Fee)

1120S with an Ameritrade Account (s/h is a physician). 2020 Ameritrade 1099 with Misc Fees in the amount of $76 "Reorg Fees." Are the fees deductible or non-deductible to the S Chapter? ty

If the fee was actually paid from the S-Corp investment account, I would deduct it - much like a bank charge would be deducted.

https://www.brokerage-review.com/accoun ... n-fee.aspx

Wouldn't it be a separately stated item on Sch. K, because it's not actually deductible for the shareholders for federal tax purposes (but is in some states)? I've seen some tax preparers put it on the line on Sch. K for "other deductions" with a statement.

Interesting link, beardenjv. Might it, in some cases be part of the basis in the stockholding?

Good point, it does seem like it perhaps could be added to the basis. If so, then the S corporation should do that at the corporate level. That's a tricky question.

In any case, I was mainly thinking of that with an S corporation, you have to generally follow the same kinds of rules as for individuals, sort of, with regard to this stuff. That's the purpose of having separately stated items. You can't just deduct something on page 1 of the 1120S because it's a necessary expense, you have to separate out items with special tax treatment, whether it's charitable donations, investment interest expense, Sec. 1231 losses, or (as I was thinking in this case) other investment expenses which are subject to the 2%-of-AGI limit (and non-deductible in 2018-2025).

Agreed, beardenjv. I don't see this as being part of Schedule K, line 1 either.