If your taxes were painful this season, here are 3 strategies I would consider:

Capital gains?

Long/short equity SMAs can enhance your potential return, while harvesting capital losses. When you have exposure to close to 1,000 stocks both long and short, you’re going to have all kinds of opportunities to sell the positions that have moved against you to harvest the loss, while hanging on to the positions that are at a gain to avoid capital gains.

Passive income? 

Private real estate funds can pass anywhere between 20% - 170% of the capital you invest as a loss in year 1 thanks to 100% bonus depreciation being back. It’s wild that you can own an asset that appreciates and cash flows, while take these deductions on paper. Just be sure to have a plan to 1031 exchange or simply initiate new real estate investments if you’re ever going to face depreciation recapture.

Active income? 

Tax-aware hedge funds are so powerful because they can provide a tax-efficient risk/return profile that has little to no correlation to the other tax-efficient investments like stocks and real estate. In addition, they may be able to pass ordinary deductions that can offset active income, whether that is from W2, 1099, or even Roth conversions.