AMA - Tax Efficient Investing

The Real Estate Espresso Podcast

This question comes from Michael who writes:

One that I struggle with is as follows. Since my non qualified investments are mostly in index funds and mutual funds, my ability to deploy them for investing is limited. I can of course sell for liquidity, but incur an enormous capital gain tax (Remember for those of us in high tax states like NJ- and even worse in CA- there is a state tax on the Cap gain that be as onerous as the Federal Tax) as we have out of ignorance in the past. So there are other options- a securities backed line of credit, opportunity zones, creative use of trusts, tax advantaged investments such as oil/gas, or REP status and/or the Short term rental "loophole". I have looked at all of these. None is particularly appealing- SBLOC is likely the best, but difficult with high interest rates and finding the best lender for this purpose. So ways to address this problem and use numbers to figure out the best approaches would seem like an interesting topic to me.

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