Tax-Efficient Investing

While returns on investment are important, what matters most is your return on your investment­—after taxes. As you consider new investment opportunities, it’s important to consider how and when they will be taxed, and if they can be structured in a tax advantageous way. We’re here to help.

For most people:

  • The best investments may be those that don’t produce ordinary income or interest income because they will be taxed at a higher rate than capital gains.
  • It’s best to have investments that allow you to defer taxes until you exit the investment.
  • Reviewing an investment or operating agreement, you should structure your returns so they are not taxed currently, and when they are taxed, they are taxed at the lowest rate possible.

However, there may be times that an investment with an inefficient tax structure is still good idea. It just has a higher hurdle before it can be acceptable.

At Argos we assess the after-tax return of potential investments and their alternative structures. The tax analysis is done both upfront and during the life of the investment. By mitigating the amount of tax paid and deferring the timing of the payment, you can dramatically improve your after-tax investment performance.