Published Monday, December 20, 2021, | Financial Advisor

Andrew Altfest, MBA, CFP ^®, has been extensively quoted in a recent article by Financial Advisor Magazine, “Some Advisors Breathe Sigh of Relief As Build Back Better Fails.” This article discusses how high-net-worth clients could have benefited from some provisions of the Build Back Better Plan, especially the proposed expansion of the state and local tax deduction from $10,000 to $80,000. Below are the key takeaways from the article.

Key Takeaways:

• Andrew Altfest shares, “This is something that’s been on the minds of advisors and clients in blue states like New York, New Jersey, and Connecticut since 2017 when the SALT cap was drastically cut. Most of our clients would have had the opportunity to reduce their taxes if the cap was expanded by passing Build Back Better, so this is not a great moment for them.”
• Losing the expanded SALT deduction is “another disincentive to live in New York, which already hurt the housing market and hurts retirees. We continue to see people moving to Florida, South Carolina, and Texas,” the wealth manager said. The failure to pass the SALT expansion also means that fewer people will itemize their deductions and as a result, that will limit charitable contributions, Altfest said. “If they raised the SALT cap to $80,000 then the state and local taxes you pay would have pushed you beyond the standard deduction, so anything you gave to charity would have been deductible,” he added.
• From a macroeconomic perspective, however, Altfest said he can understand why the proposal was stalled. “We have a huge amount of stimulus and economic growth right now and there’s a feeling that additional stimulus is not well-timed and would fan the flames of inflation further.”

Read the full article: Some Advisors Breathe Sigh of Relief As Build Back Better Fails – Financial Advisor

 

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