Several wealth management industry groups want Congress to bring back a tax deduction for financial planning advice that was repealed in 2017 and expand it in light of the economic impact of the coronavirus pandemic.
The Investment Adviser Association, the Certified Financial Planner Board of Standards, the Financial Services Institute, the National Association of Personal Financial Advisors and the Financial Planning Association want Congress to restore and expand a tax deduction for professional investment and financial planning advice that was repealed by the Tax Cuts and Jobs Act of 2017, according to a press release from IAA.
The groups also want the removal of the provision that only allowed the deduction for taxpayers whose advisor fees were more than 2% of their adjusted gross income.
“Now more than ever, all Americans are in crucial need of professional financial advice from their trusted financial advisor,” FSI president and CEO Dale Brown says in the press release. “The advisory fee deduction should be available to all American households, regardless of income, as a matter of tax fairness.”
The five groups had asked Congress to include the expanded deduction in the $2.2 trillion coronavirus stimulus package, signed into law by President Donald Trump at the end of March, according to the press release from IAA. The groups will now work to include the measure in the next phase of relief legislation in front of Congress, IAA says.
“Investment advisers and financial planners have never been more important than they are in these extremely difficult times,” IAA president and CEO Karen Barr says in the press release. “And they are working hard to help American taxpayers make wise decisions about their finances in the coming months as the longer-term economic impact becomes clear.”
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