Planner Groups Push to Revive Advice-Fee Tax Deduction in Next Stimulus

Prior to the 2017 tax law, the deduction was allowed only for taxpayers whose advisory fees exceeded 2% of adjusted gross income (AGI), the groups explained. Many criticized that limitation as unfairly benefiting upper-income households.

The groups are urging that the deduction be restored for investment advisors and financial planners, without the 2% threshold.

"Now more than ever, all Americans are in crucial need of professional financial advice from their trusted financial advisor," said FSI President & CEO Dale Brown. "The advisory fee deduction should be available to all American households, regardless of income, as a matter of tax fairness."

The five groups had urged Congress to include expanded advisory fee deductibility in the $2.2 trillion coronavirus emergency stimulus package that was signed into law on March 27. The coalition will now advocate for inclusion of the measure in the "phase 4" relief legislation to be considered by Congress.

— Check out What RIAs Should Know About Stimulus' Paycheck Protection Loans: DeVoe on ThinkAdvisor.