Tax deductions

Here’s what advisors need to know about the 20% qualified business income rule.

Mapping out their cash flow and identifying existing and potential problem areas are good places to start.

Failing to monitor reinvested dividends could boost their tax bills.

Clients must still account for gains not incurred through a sale or cash distribution.

Although the rules have become more lenient, high-income clients must not be complacent.

Salary-reduction arrangements can exclude up to $520 each month from a client’s taxable income to cover these expenses.

The Tax Court rules that creditors must have hard evidence that an obligation is uncollectable before they deduct it.

Clients should not only check the fees, but also compare their after-tax returns.