“Clients may be upset that they can no longer deduct investment fees, but they need to take a closer look as many clients were not really getting a deduction for investment fees if they were in alternative minimum tax,” Ganoe said. “And planners and CPAs are advising clients to pay off home-equity loans or line of credits because of the changes to deductibility.”
Tax-planning opportunities also include the recent ability for businesses to change accounting methods from accrual to cash in some circumstances, “and expansion of acceptable uses for 529 college savings plans to pay for private school,” Preusch said.
Added Nichols, “Tax rates are generally lower, and the wealthy client may want to reduce risk. Planners who use modeling and algorithms will want to be sure they are updated for changes in rates.”