You should check with your Investment Advisor or Fund Manager to see what exactly the Wrap Fees you are being charged relate to. If these are indeed Investment Management Fees (IMAs) they are deductible on Line 22100 of the tax return as Carrying Charges or Interest Expenses.
CRA considers the following fees to be deductible:
- They have been paid for advice connected to the buying or selling of a specific investment
- They cover the cost of administering or managing an investment owned by the person making the claim
- They are not a commission
- They relate to advice on investments made in non-registered accounts. The CRA will deny a deduction of fees related to registered accounts including RRSPs, RRIFs, RESPs and TFSAs. An investor cannot circumvent this rule by charging fees related to a registered account to a non-registered account. For the remainder of this article, when referring to investment management fees I mean deductible investment management fees related to a non-registered account.
Here are some informative links in regards to these fees: MoneySense - Are investment fees tax deductible? and CRA - Line 22100 Carrying Charges and Interest Expenses
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