Mangement Costs on Managed Funds deductible?

Discussion in 'Accounting & Tax' started by Lam Thieu, 30th May, 2008.

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  1. Lam Thieu

    Lam Thieu Well-Known Member

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    Hi,

    Just wondering if the management costs (i.e. the 1-2% management fee on most manage funds) is tax deductible?
     
    Lam Thieu, 30th May, 2008
    #1
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi ArchAngelSupreme,

    This is usually taken out of the returns before they give the returns to you. Hence, you probably wouldn't be able to claim it.

    I haven't heard of anyone be able to claim it yet (I could be wrong).

    Cheers,

    Dan

    PS I'm not a tax adviser so don't believe what I say. Speak to your accountant or tax adviser before completing your tax return.
     
    AsxBroker, 31st May, 2008
    #2
  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    Management Fees are taken from the capital of the fund - not from the income.

    Your capital returns are net of fees (the unit price is adjusted on a daily basis to take accrued fees into account).

    There are no deductions against income available.

    You should check the end of year tax statement provided by your fund manager - that will detail all income and capital gains earned, any tax credits, and if applicable, any expenses that can be deducted (but there won't be any).
     
    Simon Hampel, 31st May, 2008
    #3
  4. jrc77

    jrc77 Well-Known Member

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    Fees through indirect funds?

    What about management fees charged by indirect funds? Eg. If you have managed funds through E*Trade they charge a 0.66% fee which is taken from your bank account (NOT the fund returns). Does this then make this fee tax deductable?

    Regards,

    JR
     
    jrc77, 31st May, 2008
    #4
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    What is the nature of that fee? Is it like a portfolio administration fee?

    I would think that would be deductible.
     
    Simon Hampel, 31st May, 2008
    #5
  6. jrc77

    jrc77 Well-Known Member

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    Portfolio Fee

    They call it a "Portfolio Fee".
     
    jrc77, 31st May, 2008
    #6
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    Well that does sound deductible to me (your tax advisor would be able to confirm this) - especially if you are paying it directly.
     
    Simon Hampel, 31st May, 2008
    #7
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