Family offices face IRS scrutiny as they re-examine lender models for tax savings
- 1Wealthy families are re-evaluating tax strategies that offer significant savings but could trigger IRS audits.
- 2A 2017 tax court ruling provided a path for family offices to deduct investment expenses if operated as a trade or business.
- 3Family offices must have at least $300 million in investable assets to justify the infrastructure costs required to reduce investment advisory fees.
So what's the key point?
Wealthy families are reviewing the investment methods they used to reduce taxes. To have investment costs recognized, the scale of assets must be at least $300 million.
Source CNBC · View original ↗
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