For Our Clients

Educational Resources

By Edward “Ed” V. O’Neal, Vice President and Manager, Retirement Plans

Print This Post Print This Post

Changes to both standard and itemized deductions have been among the most discussed provisions of the new tax rule. The new rule significantly modifies itemized deductions, while completely eliminating miscellaneous itemized deductions.

Under the new tax rule, individuals will no longer be able to claim miscellaneous itemized deductions for certain investment expenses, including;

  • Professional investment fees (such as investment advisory fees, trustee fees, account fees, etc.), or

These itemized deductions had been a popular tax planning strategy for those individuals meeting the eligibility guidelines, such as the investment fees exceeding 2% of AGI.

As with other provisions in the new tax rule, this change will sunset in 2025. In the interim, individuals will need to consult with their tax advisors on an alternative tax planning strategy under the new tax law by taking advantage of the enhanced standard deductions or the modified itemized deductions.

Benjamin F. Edwards & Co. does not provide tax advice, therefore it is also important to consult with your tax professional for additional guidance tailored to your specific situation.

January 16, 2018 |