Ben Franklin famously wrote, “In this world nothing can be said to be certain, except death and taxes.” Nearly 250 years later, his observation still holds true. Except when it doesn’t. And investment managers and tax consultants have spent decades working on investment structures to diminish — if not outright remove — the certainty of taxes in specific investment opportunities.
Besides the dopamine high achieved in defeating the IRS, tax-advantaged real assets offer investors the potential to generate attractive after-tax returns through depreciation, tax credits, favorable income treatment and other tax benefits embedded within the investment structure. Vanguard’s Advisor’s Alpha research indicates that investors using tax-efficient strategies may, on average, achieve 0.75 percent to 1.4 percent in added net annual return. Real assets is a particularly fertile asset class when it comes to finding tax-efficient ways to invest and achieving this increased return
