Hello, and thanks in advance for any help.

I have belonged to an angel investment group for the last 5 years. The annual membership fee is $1,000. I have made 5 investments so far. No exits to date, but all are still going concerns. I have not set up an LLC to domicile these investments, but have simply made them as an individual.

The questions are:
- can I deduct the annual membership fee?
- if so, on which form (and line)?
- if so, can I claim prior years' fees without filing an amended return?

If I can't deduct as above, and in the event of a successful exit down the road, could I write off these fees as part of the basis?

Again, any help will be much appreciated. Thanks!

- can I deduct the annual membership fee?====> you belong to a trade association you can deduct the association’s due . investment fees paid to produce taxable income are tax-deductible.




- if so, on which form (and line)?=======> These expenses are miscellaneous itemized deductions subject to an overall reduction of 2 % of AGI on line 23 of Sch A of 1040.
- if so, can I claim prior years' fees without filing an amended return?=>No; you need to file 1040X to claim it.

If I can't deduct as above, and in the event of a successful exit down the road, could I write off these fees as part of the basis?=>>No you can deduct it only when you itemize your deductions on your return, if not, then, no.

Thanks for quick reply, Wnhough. Really appreciate it.

Strictly speaking, the angel group is not a trade association. And I wonder if the IRS would buy the argument that my annual dues (which only provide access to the deals we see every month) are investment fees.

I'd like to think so, but if anyone has a second opinion, please chime in ... always want to be doubly sure.

Thanks.

i guess your opinion is accuarate.You may be able to deduct dues paid to professional organizations if membership helps you carry out the duties of your job. Similar organizations include:
Boards of trade,Business leagues,Civic or public service organizations,
Real estate boards, and Trade associations.