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Industry groups are urging lawmakers to include in the next stimulus plan a restoration — and expansion — of the deductibility of fees on professional investment and financial planning advice that was repealed with the sweeping tax overhaul enacted in 2017.

“The repeal of the deduction may have appeared inconsequential with 2017’s rising stock market, sustained job growth and slowly increasing real wage growth,” said Kevin Keller, CEO of CFP Board, in joint statement. “But in this moment of crisis, millions of Americans, including many near retirement, are watching the money they worked so hard to earn and to save evaporate virtually overnight. It is crucial that they have affordable access to competent, ethical advice now and in the foreseeable future.”

Other groups joining the CFP Board include the Investment Adviser Association, Financial Services Institute, National Association of Personal Financial Advisors and the Financial Planning Association.

Prior to the 2017 tax law, the deduction was allowed only for taxpayers whose advisory fees exceeded 2% of adjusted gross income (AGI), the groups explained. Many criticized that limitation as unfairly benefiting upper-income households.

The groups are urging that the deduction be restored for investment advisors and financial planners, without the 2% threshold.

“Now more than ever, all Americans are in crucial need of professional financial advice from their trusted financial advisor,” said FSI President & CEO Dale Brown. “The advisory fee deduction should be available to all American households, regardless of income, as a matter of tax fairness.”

The five groups had urged Congress to include expanded advisory fee deductibility in the $2.2 trillion coronavirus emergency stimulus package that was signed into law on March 27. The coalition will now advocate for inclusion of the measure in the “phase 4” relief legislation to be considered by Congress.

— Check out What RIAs Should Know About Stimulus’ Paycheck Protection Loans: DeVoe on ThinkAdvisor.