“… the ability of a family office to be respected as a trade or business for federal income tax purposes. Although the analysis is fact intensive, with careful planning, a family office should be treated as a business and entitled to deduct its expenses pursuant to Code Section 162.” (taxcontroversy360.com/2018/01/court-rules-that-a-family-office-is-a-business)
You shouldn’t run a complex business like a family office using Excel and QuickBooks!
“One will often hear the claim that: “If you have seen one family office, you have seen one family office.” While it is true that every family is different, the challenges facing all substantially wealthy families are broadly similar and therefore require similar solutions. It is also true that the
challenges that come with substantial wealth are predictable and, as a result, many of the solutions to those challenges can be identified in advance.
Therefore, a successful family office must develop a professional strategy that anticipates and addresses these needs, coupled with an execution plan adapted to the unique attributes of a wealthy family. This white paper presents and discusses some of the professional practices we are seeing adopted increasingly by established family offices to provide senior family of ce executives and their principals with benchmarks in three key areas:
• Organizational design and key service areas of family offices as they pertain to the family of ce management company;
• Senior leadership positions with a focus on job responsibilities, skills required, success metrics, and experience needed; and
• Strategic, managerial, and governance insights that help senior executives navigate the unique dynamics that exist within every wealthy family.” – Organizational Design, Strategic Leadership, and Governance
Insights for Family Offices, Citibank Private Bank, January 2018 (www.privatebank.citibank.com/ivc/docs/OrgDesign_Leadership_GovInsights_FamilyOffices.pdf)
Talk to us about the family office technology platform that can enable and support this.