Under the House bill, the deduction for alimony paid to an ex-spouse will be eliminated beginning Jan. 1. “The proposed law would preserve the deduction for those with alimony obligations in place on or before Dec. 31,” McGrory said. “The Senate bill retains the alimony deduction. In the wrangling expected during reconciliation between the House and Senate versions of [the bill], this may be one of those items that does not have a strong lobbying effort behind it. It could likely slip through the cracks to become law.”

McGrory is also recommending HNW clients consider contributions of appreciated long-term securities to a donor-advised fund before year’s end. Benefits include avoidance of income tax (at the capital gains rate) and the net investment income tax on the appreciation in the security; a charitable contribution deduction for 2017; and removal of these securities from the client’s taxable estate if they’re over the applicable lifetime exemption amount for gifts.

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