This will often depend greatly on how the family office is structured. In general, expenses related to the management and preservation of income-producing assets may be tax deductible. However, the IRS has strict rules regarding what constitutes a valid business expense, and it’s important to consult with a tax professional or financial advisor to understand the tax implications of any family office fees.
The family office can be structured as a partnership, LLC, or corporation so it can be treated as a business with tax deductions. However, if the family office is considered a “gratuitous arrangement” by the IRS, then the fees may not be tax-deductible.