Frequently Asked Questions

	I would like to open up a 529 plan for my child/grandchild. How does this effect my gift/estate tax?
	Any amount contributed to a 529 plan is treated as a gift to the beneficiary of the plan for both gift tax and generation-skipping transfer tax purposes. The contribution does qualify for the $15,000 (in 2018) annual gift tax exclusion, however. There is also the option to make a large lump sum contribution between $15,000 - $75,000 and spread it out over 5 consecutive years (utilizing the annual exclusion amount each year). The treatment of the assets and income as it pertains to FAFSA applications is complicated, and it depends on who the owner of the account is (parent or grandparent, etc.)

	Can I still deduct investment fees from my brokerage account on Schedule A?
	As part of the Tax Cuts and Jobs Act of 2017, the deduction for investment advisory fees are no longer deductible on Schedule A as a miscellaneous itemized deduction starting in the 2018 tax year. Other changes to Schedule A under the new law include a $10,000 cap on state and local taxes and a new limit on home mortgage interest for mortgages taken out after December 14, 2017.

	What are the new tax rates for businesses?
	For C-Corporations, there is a new single rate of 21%. The previous rates were 15%, 25%, 34%, and 35%. Pass-through businesses such as S-Corporations, Partnerships, and Sole-Proprietorship are still not taxed as the profits flow-through to the business owners and are taxed at the individual level. The new tax law does introduce a new deduction to pass-through owners of up to 20% of “qualified business income.”