A new perspective on tax deductions

Bill Cass, CFP®, CPWA®

Bill Cass, CFP®, CPWA®, 02/26/19

A new perspective on tax deductions

Many popular tax deductions were limited or eliminated under the Tax Cuts and Jobs Act, while the standard deduction increased significantly. Chris Hennessey highlights some strategies for investors to consider for mitigating the impact of fewer deductions.

  • Lump several years of charitable giving into one tax year in order to itemize deductions
  • Fulfill charitable intentions by donating assets directly from an IRA (if age 70½ or older, up to $100,000 annually)
  • Utilize a non-grantor trust to own a residential property and secure a separate deduction SALT (state and local taxes) as well as mortgage-interest deduction
  • To partially offset the loss of the deduction for investment advisory fees, consider paying the fee attributable to retirement assets directly from those accounts

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