Tax Reform and Family Office Restructurings
Does your family office qualify as a trade or business? This is an important question and a difficult question, as recent federal tax reform may have unexpectedly increased tax liability for families, and the Internal Revenue Code does not provide a clear definition of these terms.
However, Waller's team of experts reports that a recent decision by the U.S. Tax Court may provide some guidance and serve as a precedent for family offices seeking to maintain the deductibility of legitimate business expenses. Ultimately, restructuring may be the solution.