When sweeping new tax legislation arrives, risk is not far on its heels. There is the risk that the client ignores the law, missing out on short-term opportunities. There is the risk that the client, armed with incomplete information, moves too quickly, paying at leisure for mistakes made in haste. And there are risks for the advisor.
With the Tax Cuts and Jobs Act of 2017 (PL 115–97), we’re seeing another risk—the risk of continued uncertainty. Particularly in the business tax sections, this law still has unclear terminology, creates unintended consequences, and has purposely included sunset provisions. This column discusses how an advisor can help business owners manage the risks of uncertainty the legislation creates.
Author: Steve Parrish, JD, RICP, ChFC, CLU, RHU, AEP, is the codirector for the New York Life Center for Retirement Income Planning at The American College of Financial Services. He is also adjunct professor of advanced planning at The American College and an adjunct professor of estate planning at Drake University Law School.