01/31/2025 | Press release | Distributed by Public on 01/31/2025 14:47
CFP Board, together with the organizations identified below, sent a letter to the Senate Finance and House Ways and Means Committees voicing our collective support for the extension of existing tax deductions for pass-through businesses under Section 199A and the expansion of its applicability to additional hardworking small business owners by clarifying that financial services professionals shall be categorized as qualified trades or businesses rather than as "specified service trades or businesses" (SSTBs). Section 199A, created by the Tax Cuts and Jobs Act (TCJA), is a 20% deduction on "qualified business income" for owners/shareholders of pass-through businesses, such as S corporations, partnerships, and sole proprietorships. However, financial professionals, financial planners, investment advisers, and retirement planners, including many CFP® professionals, fall under the SSTB category, limiting owners and shareholders of SSTBs from taking full advantage of the 20% deduction.
To read the full letter, please click here.
Signees