How do I deduct advisor fees in California state income tax?

As of my knowledge cutoff in early 2023, investment advisory fees are no longer deductible on your federal income tax return due to changes from the Tax Cuts and Jobs Act (TCJA) of 2017. This law suspended the miscellaneous itemized deduction for investment expenses, including advisory fees, from 2018 through 2025. For California state income tax, however, the rules can be different from federal tax law. California does not conform to all federal tax law changes, and as a result, some deductions disallowed at the federal level may still be available for California state tax purposes. To deduct advisor fees on your California state income tax, you would typically: 1. Determine if the fees are considered deductible by California. Investment advisory fees may be deductible if they are considered to be an ordinary and necessary expense related to the production of income. 2. Itemize your deductions. California allows taxpayers to itemize deductions even if they take the standard deduction on their federal return. You would need to complete Schedule CA (540), California Adjustments, to make adjustments to your federal itemized deductions for your California return. 3. Enter the appropriate amounts on your California tax return. If investment advisory fees are deductible, you would include them in the "Miscellaneous Itemized Deductions" section of Schedule CA (540), subject to any applicable limitations. Please note that tax laws and regulations can change, and it's important to consult the most current California tax forms and instructions or speak with a

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