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For most family offices, tax preparation is difficult because the information needed to file is scattered across different systems, institutions and people. K-1s arrive late from a dozen funds. Brokerage statements sit at four different institutions. Ownership percentages live in a spreadsheet that may not have been updated in years.
Before an accountant can begin filing, someone has to pull everything together, verify the numbers and reconstruct the family's financial picture.
MYFO helps family offices organize that information throughout the year, so tax preparation involves less time chasing documents and reconciling data. Here are seven features that can help simplify the process.
The Features Family Offices Use at Tax Time
1. Document Vault and AI Document Parsing
K-1s, capital account statements and brokerage statements often arrive in different formats and through different channels. MYFO's Document Vault brings these records together, while AI document parsing extracts relevant information and organizes it under the appropriate entity.
- Store K-1s, statements, agreements and invoices by entity.
- Give accountants access to the documents they need through role-based permissions.
- Extract data from private equity and venture capital statements to support transaction records and accounting workflows.
With documents organized and searchable, families and their advisors spend less time tracking down paperwork during filing season.
2. Custom Reporting Without Requiring a Full General Ledger
Not every family office needs a full general ledger or fund accounting system to manage its financial information for tax preparation. These systems serve important accounting needs, but they can also introduce additional reconciliation work. The right setup depends on the family's structure, reporting requirements and existing systems.
MYFO consolidates information from banks, custodians and existing ledgers into a consistent structure, with transaction history organized by entity. Accountants can access the data and generate custom reports without piecing together information from multiple sources.
- Share access directly with accountants.
- Generate reports by entity, including transaction history and cash movements.
- Track assets and obligations that may not fit neatly into traditional bookkeeping tools, including private fund positions, unfunded commitments, intercompany loans and multi-entity real estate.
- Integrate with an existing general ledger where needed, without requiring every entity to use one.
Wondering whether your family office needs a full general ledger? Learn what to consider when choosing the right accounting setup.
3. Realized and Unrealized Gains Reporting
Understanding investment gains is an important part of tax preparation. MYFO tracks realized and unrealized gains across public and private holdings, helping families and their accountants review investment activity and identify the information needed for tax reporting.
Instead of starting with a stack of year-end statements, the team can work from consolidated investment data and transaction history.
4. Entity Mapping and Look-Through Ownership
Family wealth often spans trusts, holding companies, foundations, LLCs and donor-advised funds, each with its own ownership structure and reporting considerations.
MYFO's entity map shows how these structures connect, including ownership percentages and effective dates. This historical view helps families and advisors understand how ownership changes during the year may affect income allocation and tax reporting.
5. Scenario Modeling and Tax Planning
Tax planning is easier when families can assess a potential transaction in the context of their existing holdings. MYFO lets families model proposed buys, sells and capital calls against their current portfolio, helping them evaluate potential outcomes before making a decision.
Families can also use these scenarios to explore tax-planning opportunities, including potential tax-loss harvesting, with their advisors before year-end.
6. Tasks and Deadline Tracking
K-1s need follow-up, estimated payments need attention, and filing deadlines need to be met. When these obligations are tracked across emails and spreadsheets, it becomes harder to see what is outstanding and who is responsible.
MYFO's task management capabilities help families and advisors assign responsibility, track outstanding items and set reminders. The same approach can be used for recurring obligations such as capital calls and loan renewals.
7. A Shared Workspace for Families and Advisors
When accountants, family members and legal advisors exchange documents through separate email threads, it can be difficult to know whether everyone is working from the latest information.
MYFO brings them into a shared workspace, with role-based access to relevant information. This gives the team a more consistent starting point for tax preparation and reduces the need to repeatedly request documents that have already been provided.
What Tax Preparation Looks Like Throughout the Year
The goal is to spread the work across the year instead of leaving it all until filing season.
- Throughout the year: Statements and capital account updates are collected, parsed and organized under the relevant entities and assets.
- Each quarter: Transactions and investment data are reviewed, while estimated payment reminders and outstanding items are tracked.
- Before year-end: Families and advisors review potential transactions and consider planning opportunities while there is still time to act.
- During filing season: Outstanding K-1s are followed up on, documents are available in one place, and accountants can generate tax-filing reports organized by entity.
Tax treatment depends on the family's circumstances and applicable rules. MYFO's reporting and scenario modeling can support the process, but tax decisions and filings should be reviewed with a qualified tax professional.
Get Ahead of the Next Tax Season
Getting entities, accounts and historical statements organized before Q1 documents arrive makes the next filing cycle a matter of pulling reports, not chasing paperwork.
See how your family office's structure maps into MYFO. Book a demo.
