When a client asked how non-C corporations are treated under the new law, Dave Stolz, a veteran CPA with 17 years of experience, said he wasn’t entirely sure.
In this instance, it's not exactly clear how the deduction will be enforced since the IRS and Treasury have not yet provided detailed guidance, Stolz says.
Advisors should be gearing up for more questions like these. The majority of affluent Americans are likely to adjust their financial plans as a result of the changes, according to a survey conducted by the American Institute of Certified Public Accountants.
This is just one example of how clients are reacting to the Tax Cuts and Jobs Act. While clients may be excited about receiving larger benefits, they might worry claiming them will be confusing.
To help clients develop a better tax plan in compliance with the changes from the overhaul, many of Financial Planning’s contributors and reporters have compiled useful tips. Click through to check out 11 ways you can help clients navigate tax planning under the new law.