InvestmentTax PlanningWealth Management

Good for CPAs, Bad for RIAs

As great as this tax bill is for CPAs who offer tax planning services, it is just as bad for investment advisers. Here’s why:

  1. RIAs do not benefit from the 20% deduction of pass-through entity income.
  2. RIAs tend to have high state, local and property taxes. Limiting this deduction, along with elimination of the personal exemptions, means that many will pay more taxes next year.
  3. Clients are no longer able to deduct the cost of investment advisory fees as a miscellaneous expense on their tax return.

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