Private Wealth

Affluent individuals often hold complex assets, such as private companies, private equity, hedge funds, art and other collectibles and unique assets such as airplanes. They may also seek to improve society through substantial charitable commitments to public charities or other charitable vehicles. Ultimately, they may transfer their wealth during life through a trust or at death through an estate - which are also entities subject to income tax. For all of these entities and those who own them, the income tax provisions and regulations are often complex and evolving.

Deloitte Private Wealth brings deep industry experience across a national and global network to offer planning considerations for the individuals and their families through the generations - coupled with broad-based compliance services for family offices, operating/investment entities, trusts, estates, and the high-net worth individuals.

Let's talk about what services Deloitte Private Wealth can provide to assist you.

Individual income tax planning

Regardless of the type of assets held by an affluent individual, there are basic blocking and tackling issues to consider annually or on a multi-year basis to make efficient tax decisions and manage cash flow.

Deloitte Private Wealth may assist with:

• Individual owner issues arising from passthrough entities such as an analysis of active versus passive status for owners, tracking of tax basis in such activity and self-employment tax;
• Structuring the acquisition of complex assets, including choice of entity and the various tax implications of each option of ownership;
• Planning for controllable deductions, such as contributions of cash and non-cash assets to charity;
• Considering related to contemporaneous documentation to have sufficient support for all tax filing positions;
• Understanding multistate and/or foreign filing obligations;
• Preparing for potential IRS or state tax authority examinations.

Owners of private enterprises

Deloitte Private Wealth understands the challenges family enterprises face and has served this market for over a century. Our team has significant experience advising family enterprises and their owners on the tax implications associated with expanding the company's domestic and global footprint. Whether first-generation entrepreneurs are growing their business, or their family business has been successfully owned by multiple generations, these businesses can benefit from our significant experience assisting families throughout the ownership life cycle—from emerging growth to considering a future liquidity event.

In addition to the individual income tax issues noted previously, Deloitte Private Wealth may assist with:

• Entity structuring that may help achieve a family's desired ownership and tax objectives;
• Financial and tax due diligence for acquisitions and divestitures;
• Potential economic and tax implications of transferring a business interest from one generation to the next;
• Quantifying the estimated tax liability upon a sale or passing of an owner and modeling alternatives to pay the tax liability associated with the transaction;
• Preparing families and their management team to plan for these life cycle events to achieve their goal of keeping the business family owned.

Principles of alternative investment funds

Principals of alternative investment funds, such as hedge funds, private equity or real estate, often have a complex and unique assortment of assets held, particularly in passthrough entities that produce complicated Schedule K-1s. Additionally, they may face issues that are dependent on the structure of the fund itself. As part of Deloitte's broader Investment Management team, Deloitte Private Wealth has deep understanding of how the issues presented by these types of investments may be treated on their individual or various family trust returns.

In addition to the general individual income tax issues discussed previously, Deloitte Private Wealth can advise on issues such as:

• Understanding the character of income to be received based on the structure of the fund and plan for the income tax implications;
• Describing how the investment strategy may affect relevant tax return disclosures;
• Reviewing fund agreements to describe the principal's ability to transfer an interest in the fund for estate and gifting purposes.

Fiduciary income tax planning

A fiduciary is responsible for managing and distributing assets from a trust or an estate, depending on the terms of the instrument. While the income taxation of trusts and estates is similar to individual income tax, fiduciary income tax rules have unique aspects and differences. Fiduciary income tax filings may be required annually, depending on the type of instrument. Federal and state fiduciary income tax filings may change year-to-year.

Deloitte Private Wealth may assist fiduciaries in planning for these complex, ongoing requirements. Our services include:

• Planning for distributions to beneficiaries (i.e., grantor, nongrantor, complex, simple);
• Planning for distributions to individuals, including those subject to the generation skipping transfer tax;
• Annual fiduciary income tax compliance;
• Tax planning for trusts with S-Corporation stock;
• Identifying state of situs for proper and fine filing obligations.

Resources

Individuals:

Essential tax and wealth planning guide 2025 edition

Owners of private enterprise

Investment Management

Wealthy families will typically experience two forms of mobility: mobility of family members and mobility of investments and business interests. International mobility can lead to tax residency in more than one location, resulting in exposure to property rights, inheritance laws, and income and estate taxes.

Whether you are a United States (U.S.) citizen or a foreign national, proactive planning prior to crossing international borders or acquiring new investments in another country is essential to anticipate your income tax and potential estate tax obligations.

Let's talk about what services Deloitte Private Wealth can provide to assist you.

Income tax planning for inbound and outbound mobility

Individuals may choose to maintain significant periods of time in the U.S. as a result of family ties, business investments, or job opportunities. Frequently attracted by the growth and stability of the U.S. economy, foreign nationals/nonresidents of the United States and residents of other countries investing in the U.S. may have significant implications. Deloitte can help assess whether the complex income tax structure is efficient for both housing/family structure and operating/investment entities, trusts, estates, and the high-net worth individuals.

Deloitte Private Wealth may assist with:

• Pre-migration planning;
  
• Entity classification analysis, entity tax planning and structuring;
• Treaty analysis;
• Income tax planning, including IRC 962, and;
• Expatriation analysis and planning.

*Disclaimer: The legal and regulatory regimes, some of the Deloitte Touche Tohmatsu Limited (DTTL) member firms, including the US member firm, do not provide legal services, such services are provided by the legal and immigration practices within these member firms in accordance with applicable country rules and regulations. The Deloitte US firms do not practice law nor provide legal advice.

International information reporting, global tax compliance, and planning for US citizens and residents

Families with a global presence require diligent planning to adhere to information reporting, disclosure and compliance requirements both at home and abroad, as well as to manage their global tax burden. U.S. information reporting requirements and anti-deferral rules are driven by the US entity classification of an entity, which may be different than the classification in the jurisdiction where the entity was organized or established.

Deloitte Private Wealth may assist with:

• Global income tax compliance and reporting,
• Entity classification analysis, entity tax planning and structuring,
• Foreign trust analysis and disclosures,
• Preparation of international information reporting forms and disclosures,
• Foreign bank and financial accounts and specified foreign financial assets disclosure,
• Pre-investment, pre-acquisition and pre-liquidity tax planning,
• CFC and PFIC testing, reporting and planning, and
• Analysis of global tax footprint from both an income and wealth transfer tax perspective​.

Income tax planning and compliance for inbound investments

Foreign individuals and trusts who are neither U.S. citizens nor U.S. residents are subject to tax on income that is effectively connected with a U.S. trade or business as well as income that is fixed, determinable, annual, or periodical (FDAP) from U.S. sources. U.S. income tax returns may be required or recommended even if withholding is done at source.

A foreign investor may purchase real property within the U.S. in a variety of ways: in his/her own name, through a U.S. corporation, partnership, or trust or through a foreign entity. Each of these options has its own pros and cons. U.S. inbound real estate investment is often subject to special tax rules including the rules set forth in the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA).

Deloitte Private Wealth may assist with:

• Effectively Connected Income (ECI) and Fixed or Determinable Annual or Periodic (FDAP) income planning considerations and reporting requirements;
• Applications for FIRPTA withholding certificates, and;
• U.S. tax compliance.

Cross-border transfer tax planning and compliance

The modern family has created an increasingly borderless world around them. And while ease of mobility is generally positive, planning ahead is key to meeting and preserving personal objectives and desires. For families of means with family members living, working, and moving around the globe, the resulting tax, governance, and estate planning can be complex. Particularly for nonresidents, income, estate, gift, and inheritance tax exposures. Additionally, wealth transfer operations should be considered, as non-U.S. citizens who live, work, or own property within or owning U.S. assets may be subject to gift, estate tax, and potential transfer taxes. Determining which assets are considered U.S. situs can be complex, and the tax consequences of such determinations can be significant.

Deloitte Private Wealth may assist with:

• Cross-border estate, gift and inheritance tax planning;
• A holistic, personalized assessment of the tax and financial tax planning options at near end of life or upon death and;
• Estate and gift tax compliance.

International private wealth tax controversies

In today's complex tax landscape, many high-net-worth individuals and their enterprises face increasing challenges that require careful navigation. With a rapidly evolving IRS, the future of enforcement efforts is uncertain. The IRS's enforcement approach may focus on high-net-worth individuals and their enterprises to meet technologically-advanced scrutiny from both the IRS and other tax authorities.

Historically, some taxpayers may have approached controversy with a reactive mindset, addressing issues only as they arose during an audit. Today, proactive planning from the outset can help prevent controversy and, when an issue emerges, carefully manage potential risks and potentially avoiding dispute altogether. By adopting a strategic approach to tax controversy, taxpayers can effectively manage their obligations and protect their interests.

Deloitte Private Wealth may assist with:

• Audit and controversy risk assessments;
• Documenting and preparing evidence and defense files;
• Pre-registration or agreement with tax authorities;
• Managing correspondence with tax authorities;
• Tax authority activity handling and closure;
• Communicating with tax authorities and;
• ADR appeal.

*Disclaimer: The Deloitte US firms do not practice law or provide legal advice.

Resources

Assessing your wealth transfer legacy in 2024

US estate and gift taxation of resident aliens and non-resident aliens

Global Family Office Webinars

Global Deloitte Private: Deloitte Private | Deloitte Global

Individuals who hold unique assets such as art and collectibles, private airplanes or yachts, or even cryptocurrency and digital assets should be aware of the income, estate, gift, and estate tax planning implications of holding and transferring such assets during life and at death. When an individual seeks to purchase or divest of a unique asset, Deloitte Private Wealth may analyze the tax rules that are applicable at the time of the transaction.

Let's talk about what services Deloitte Private Wealth can provide to assist you.

Art and collectibles

Art can be viewed as a store of wealth, a masterpiece to cherish, a family heirloom, a business, part of the holdings of an estate, or through the lens of a cultural institution. Deloitte Private Wealth's Art & Finance specialists work with collectors, family offices and related businesses to ensure and maximize the financial return for unique assets. These specialists can also review the related applicable taxes and unique issues and complexities which arise when owning and dealing in art as well as managing the use of art now and in the future.

Deloitte Private Wealth may consult with collectors and art-related businesses on:

• Consideration on acquisition of works, including sales and use tax, value-added tax, customs duties, use of cultural property into different countries and jurisdictions;
• Fiduciary considerations of owning collectible assets;
• Income tax planning for the sale of collectible property;
• Charitable contributions of tangible personal property to public and private foundations, and related valuation and income tax considerations;
• Compliance and consulting for private foundations and private operating foundations including 990-PF;
• Gift and estate planning, including income gifting, planning for estate disposition and assessing a collectible assets as part of a larger legacy endowment project;
• Planning for the structure of a large asset acquisition, such as a private aircraft;
• Tax, Audit and Consulting services to the brick and mortar and online businesses of the collectibles industry;
• Monitoring global developments and conferences as an industry-leading, bi-annual review of the art market.

Private aircraft and yachts

For people with fly regularly, having access to a private aircraft can be a significant time, efficiency, and privacy advantage. However, the purchase price, operating budget, and storage of the aircraft, or outfitting to accommodate preferences for luxury and attention to detail, security and privacy offer security and technical needs with luxury accommodations, and security and comfort can be a significant investment. It is especially if it situated for a combination of business and personal use.

In addition to income, sales, and use tax considerations, issues often arise around income tax deductions, fringe benefit rules, and bonus depreciation. Complying with these myriad tax treatment requires significant amounts of detail and precision.

In particular, Deloitte Private Wealth's Aviation Tax practice provides services to family offices, aircraft management companies, high-net-worth individuals, flight departments, and wealth managers to manage these complexities. Our team has extensive knowledge of specific airport/airline sales, ownership, operations, and tax compliance and can consult on issues such as:

• Planning for the structure of a large asset acquisition, such as a private aircraft;
• Tax planning related to depreciation of a large asset acquisition, including specific rules for aircraft;
• Discussing the tax implications of the personal versus business use of and additional rules related to that use;
• Addressing the myriad of tax rules that need to be considered to permit any tax deductions related to chartering or otherwise using a yacht for business use.

Blockchain and digital assets

As the allure of digital assets grow, and the power of blockchain technology continues to advance, the tax landscape remains a crucial terrain to navigate. The dynamic and evolving tax implications surrounding digital assets are creating both potential challenges and opportunities for individuals, families, and their family offices looking to enhance wealth. Navigating the tax implications surrounding digital assets is paramount to harness their full potential while complying with evolving tax frameworks.

Since 2012, Deloitte has been a market leader in the Blockchain and Digital asset industry. Through the collaboration of a dedicated team distributed across 15 countries, we assist with the complex world of blockchain, digital assets, cryptocurrencies, and tokenization. With a dedicated Private Wealth and Family Office practice, we can advise in the following:

• Identification of proper characterization (e.g., staking, airdrops, acquisitions, transfers, swaps, DeFi, etc.)
• Annual tax compliance and reporting requirements;
• Tax accounting, planning and select structuring in accordance with new and expanding Treasury Regulations;
• Blockchain-backed family trust and estate planning, and philanthropy;
• Transactions in specific assets such as NFTs, gaming tokens, tax collectibles;
• Measuring digital assets located family offices and private business enterprises;

Ownership of sports teams

As the value of sports franchises continues to escalate, owning and investing in sports franchises has become an appealing long-term investment. However, today's sports business is not just about game day success but also about understanding the business elements of sports that drives higher revenues and creates a passionate fan base leading to overall financial success and significant returns for owners and investors upon sale of the franchise.​

At Deloitte, our multidisciplinary approach to the sports industry coupled with our technical knowledge helps sports franchises and their owners analyze potential revenue streams, identify emerging industry trends, and enhance franchise and brand value while reducing risks and enhancing after-tax cash flows.​Deloitte Private Wealth can consult with sports franchises and their owners in the following areas:​

• Acquisition and divestitures of sports franchises including tax and accounting due diligence, purchase price allocation matters, partnership basis step up computations, etc.​
• Merger and acquisition planning and entity structuring
• ​Stadium development and planning including lease and financing matters​
• Tax accounting method and period planning​
• Cost segregation services and cost recovery planning of both tangible and intangible assets​
• Federal, state, and international tax compliance and planning for both sports franchises and their owners
• Passive vs. active participation planning for sports franchise owners;
• Multistate or operating reporting, state nexus planning, revenue sourcing, selective state compliance costs and uncertain treatment in certain states for Entity Pass Through (EPTF) elections
• Player compensation and executive compensation matters including phantom stock ownership, token-based equity compensation, employee retention, and loyalty interest grants
• Charitable planning for sports franchises and their owners, including the deductibility of suite and amenity issues related to philanthropic contributions, charitable gifting, and related valuation and income tax considerations
• Tax compliance and reporting for public and private foundations
• Gift and estate planning, including income gifting, planning for estate disposition and assessing comprehensive sports franchise ownership as part of a larger legacy endowment project
• Travel considerations and cross-border tax considerations.

Resources

Private Aircraft

Private Equity in Sports Playbook

Sports Industry

Art and Finance Report

While death and taxes are inevitable, their consequences do not need to be a surprise. In the United States (U.S.), estate planning often focuses on navigating the complicated issues associated with transfer taxes, which include gift, estate and generation-skipping transfer taxes. The cumulative value of lifetime gifts and certain assets held at death can subject the excess of the individual's assets owned or controlled at death over the lifetime basic exclusion amount (BEA) in effect at the individual's date of death to a 40% estate tax. A tailored approach to estate planning, documents, and the various implications of them can prepare the family, family office or primary held business to pass on a legacy to heirs and/or charities with an impact lasting long after the individual.

Let's talk about what services Deloitte Private Wealth can provide to assist you.

Lifetime transfer tax planning

When creating and preserving wealth, you would usually top of initial planning for the transfer of wealth to others such as family members or philanthropic pursuits. Whether considering whether property transfers (and the related tax issues) may adversely impact wealth preservation plans. A critical, yet often overlooked, element of wealth transfer is frequently the communication among all affected parties. If the "gift" and subsequent behavior is vague or misinterpreted, it can impede the planning and tax benefits of wealth transfer implementation.

Deloitte Private Wealth may assist with:

• Preparing or reviewing trust agreements and other related documents of transfer (for assets such as trusts or estates), and provide tax calculations are necessary;
• Review of passthrough or entity formation documents to analyze the effect of various provisions on wealth transfers;
• Consultation regarding the need for various tax filings (gifts, trusts, etc.);
• Consultation regarding philanthropic plans and analysis of public and private vehicles to formula them;
• Review of planning for assets to be transferred to evaluate substantial compliance with necessary reporting;
• Preparing compliance related to transfers for any affected entities and the individual;
• Discussing necessary documentation in the event of an IRS examination.

*Disclaimer: The Deloitte US firms do not practice law or provide legal advice.

Legacy assessments

A regular review of the broader estate plan may reveal issues that may not come to light and assist in ownership decisions. For an independent review - for example, a broadly understood succession plan, compliance with family governance, updated plans for taxes, inadequate business succession plans, unintended representations of charitable transfers, or market value related to the family's stability and future. A legacy assessment can provide a broader view and empower families and their businesses to make decisions during lifetime where there is still time to adjust and provide support for the desired outcomes.

Deloitte Private Wealth may assist with:

• Calculating estimated assets tax liability and analyzing liquidity constraints;
• Summarizing testamentary documents to map out asset distribution;
• Preparing plan; if expected estate planning documents compared with individual documents may require updates;
• Collaborating between family members and advisors to understand outcomes and identify additional implications such as philanthropic planning, immediate post-death tax filings, and expected tax liability;
• Reassessing goals and objectives based on life events such as marriage or a change in asset structure.

Estate administration

The period between death and the final disposition of the estate's assets is often referred to as the estate administration period. This period often gives rise to intricate tax, financial, legal, and other considerations. Effective post-mortem administration requires careful planning for the surviving family members and co-fiduciaries as well as family dynamics.

Deloitte Private Wealth may assist with:

• Analyzing post-mortem tax planning considerations based on the client's facts and circumstances;
• Evaluating potential opportunities for financing the estate tax liability;
• Reviewing and providing feedback on valuations of estate assets;
• Preparing the estate tax returns, including Form 706 and Form 8971;
• Evaluating the benefit of selecting alternate valuation date and coordinating with preparation of the decedent's final income tax return, Form 1041.

*Disclaimer: The Deloitte US firms do not practice law or provide legal advice.

Cross-border transfer tax planning

Wealth transfer taxation should also be considered, as non-US citizens who live, work, or own property within the U.S., find themselves subject to U.S. estate, gift, and generation-skipping transfer taxes. Determining which assets are considered US situs can be complex, and the tax consequences of such determinations can be significant. This complex tax planning is especially important for non-citizens with a green card or assignment. Upon their death, however, their estates may face adverse US estate tax consequences in the absence of proactive and careful planning.

Deloitte Private Wealth may assist with:

• Assessing whether the current estate and wealth planning structure is compatible with current migration plans;
• Analyzing existing structures under U.S. consideration and resulting U.S. transfer tax profile, as well as whether it is consistent with your overall wealth planning goals;
• Coordinating any suggested changes to your estate plan with your non-U.S. advisors;
• Modeling the impact of U.S. transfer tax on overall wealth transfer planning goals and objectives to address complexities or tax inefficiencies;
• Calculating estimated estate tax liability and analyzing liquidity constraints;
• Reviewing and summarizing non-U.S. trusts, foundations, and other planning documents to analyze related U.S. income, estate, and gift tax profile and identifying key considerations or observations;
• Collaborating between family members and advisors to understand outcomes and identify additional implications such as philanthropic planning, immediate post-death tax filings, and expected tax liability;
• Reassessing goals and objectives based on life events such as marriage or a change in asset structure.

Resources

Essential tax and wealth planning guide 2025 edition

Assessing your wealth transfer legacy in 2024

Preparedness: Death of a principal

Pivotal moments for family enter

prises2020 essential tax and wealth planning guide

In today's complex tax landscape, many high-net-worth individuals and their enterprises face increasing challenges that require careful navigation. For example, the future of enforcement efforts is rapidly evolving.

Enforcement may include more analytics from artificial intelligence, machine learning and data analytics. The stakes can be high for those unprepared to meet technologically-advanced scrutiny from both the Internal Revenue Service (IRS) and other tax authorities.

Regardless of where or how an examination starts, the tax controversy process requires careful planning from onset to resolution. Deloitte Private Wealth can assist with important steps of the tax controversy process.

Let's talk about what services Deloitte Private Wealth can provide to assist you.

Proactive examination readiness

A prudent tax for taxpayers is to identify and prepare for potential examination risks. Proactive planning is important both to document the related tax positions and to create a strategy for defending them.

By conducting a periodic risk assessment, taxpayers can be effectively prepared for a tax examination if one takes place. Such risk assessments can range from a simple discussion with internal advisors to a detailed examination readiness assessment that identifies key risks and potential exposures to mitigate them.

Examination assistance

If the IRS or state tax authorities contacts, do you know what to expect, how the process will play out and when, and what experience is necessary for your controversy situation? However, in fact, it can involve much more than just responding to information requests and following up to determine the status of the examination.

With a team of professionals dedicated to offering tailored services for wealthy individuals, Deloitte Private Wealth can help you to address and resolve complex examination-related questions, offering clarity and compliance.

Responding to correspondence

The service centers for the IRS and state tax authorities continue to play a crucial role in their operations. In recent years, responding to notices and other correspondence involve ongoing challenges. For example, it can be difficult to navigate following an assessment of penalties.

Deloitte Private Wealth has a team to assist and provide approaches in resolving notices and addressing payment issues and other discrepancies.

Resources

Private wealth tax controversies