{ "docId": "019dd923-5e88-73ef-bd58-d60590226592", "docSlug": "4dabb861968e8184", "documentTitle": "ey family office study client deck asia pacific", "authorId": "MorganStanley", "authorName": "EY", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.707, "pageNumber": 50, "pageCount": 64, "prevPage": 49, "nextPage": 51, "slideType": "appendix_data", "function": "appendix", "density": "overcrowded", "nDataPoints": 5, "notes": "This slide provides technical tax and legal context for US-based family offices.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd58-d60590226592/50", "deckHref": "/decks/019dd923-5e88-73ef-bd58-d60590226592", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd58-d60590226592.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd58-d60590226592#slide-50", "components": [ { "bbox": { "h": 0.05, "w": 0.28, "x": 0.67, "y": 0.85 }, "kind": "disclaimer", "text": "Note: For a more detailed discussion of the various US legal structures and their different tax implications, please see Appendix 2.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "706636f2-155f-48e2-888c-0ca531c465a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.28, "x": 0.05, "y": 0.42 }, "kind": "paragraph", "text": "Legal structures: In the US, while partnerships and limited liability companies (LLC) are often taxed identically, the fact that all the members of a LLC can benefit from the protection of limited liability has generally decreased the use of general partnerships or limited partnerships in entity selection.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8ebac5ba-6b9e-468a-9210-afae18b9dbb7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.28, "x": 0.05, "y": 0.78 }, "kind": "paragraph", "text": "US taxation of individuals and trusts: The taxable income of US citizens, tax residents and domestic trusts is subject to a graduated rate schedule. The top marginal tax rate on the ordinary income of individuals and trusts is 39.6%. Long-term capital gains and qualified dividends are taxed at a top income tax rate of 20%. In some cases, the Alternative Minimum Tax (AMT) may apply. AMT has a top marginal rate of 28% and applies when it exceeds the regular income tax of an individual or trust.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bda3eee3-e7e3-4529-a0ef-5046adaced45", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.28, "x": 0.36, "y": 0.55 }, "kind": "paragraph", "text": "US taxation of corporations: Corporations, other than the 'S corporations' described below, are generally subject to US income tax at the entity level on their worldwide income, with a credit allowable for certain taxes paid to foreign jurisdictions. The maximum federal corporate tax rate is currently 35%.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c2a6b300-08ac-463f-9ad1-4ce0c5bb69a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.28, "x": 0.36, "y": 0.78 }, "kind": "paragraph", "text": "S corporations: Certain corporations may elect to be taxed under subchapter S of the Internal Revenue Code as a hybrid entity, called an S corporation, or S corp, which allows for many (but not all) of the benefits of the flow-through nature of partnerships.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "de2054e9-9c18-4b03-9954-1d46caa1121b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.28, "x": 0.67, "y": 0.65 }, "kind": "paragraph", "text": "Private trust companies: Family offices often consider whether they should provide professional fiduciary (trustee) services to the family members they serve, or whether such services are best purchased from external sources.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e05fc72e-cc69-4bdd-a7f8-760262dd6892", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.28, "x": 0.67, "y": 0.35 }, "kind": "paragraph", "text": "Family offices housed within private operating companies: Many family offices begin within the structure of a private operating business, providing services to the family business owners.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f87e6b77-d78c-404d-9adb-b58b1669025c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.28, "x": 0.36, "y": 0.35 }, "kind": "paragraph", "text": "US taxation of partnerships: Partnerships are not subject to federal taxation at the entity level. Instead, the partnership allocates its items of income, deduction and credit to its partners.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f9bb654d-c9b1-414c-99e3-22ac809244bd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.1, "x": 0.05, "y": 0.39 }, "kind": "title", "text": "The US", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ddb17c99-6f38-49b2-95b7-3593a876a735", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }