United States

$1B family office with fixed asset issues finds millions in savings

Resort, manufacturing and agricultural operations present challenges


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The vice president of tax for a family office realized that the various businesses the family office managed were having significant issues complying with the IRS’ new tangible property rules. The entity’s portfolio included 10 different businesses, including resorts, manufacturers and agricultural businesses, with total annual revenues of more than $1 billion.


The family office sought a provider who could work with the in-house resources at each of their businesses to help them comply with the new rules for their 2014 tax filings, address issues unique to each business and position them to move forward. They chose RSM.

Our role

RSM performed the comprehensive analysis and worked to implement the rules with management of the family office’s major businesses, which had varying levels of understanding of the tangible property rules, different accounting systems, different Big 4 accounting providers and varying industry issues. For others, we worked to educate company personnel on the regulations so that they could update their accounting practices and systems to effectively maintain their property records going forward.

Due to the highly successful results of the initial assignment, RSM was asked to take over fixed asset management on an outsourced basis for some of the businesses and prepare the tax returns for the largest company.


Through either outsourcing or education, and process and systems improvement, we positioned all the family office’s businesses to be compliant with the tangible property rules and to effectively manage their tax fixed assets going forward. 
In addition:

Our initial tangible asset studies for the various enterprises resulted in $17 million in current tax deductions, delivering $7 million in current tax savings.

The family office’s two resort operations selected us to prepare their tax returns and maintain their fixed asset databases, which resulted in an additional $1.5 million in tax savings for 2015.

The family office selected RSM for other tax projects, including cost segregation studies resulting in over $2 million in current tax savings.

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