We recently spoke with a Broadcom employee household with a ~$10M portfolio facing significant tax complexity.

Despite having Real Estate Professional Status (REPS), cost-segregated rental properties, and strong income, there were still meaningful after-tax inefficiencies driven by concentrated stock exposure, RSU taxation, and uncoordinated planning across the balance sheet.

In our discussions, we outlined a framework that could address these issues in a more integrated way:

1. Portfolio-based financing

Rather than relying on traditional bank lending, we discussed using portfolio-based financing (such as box spreads) as a way to create liquidity at competitive rates while avoiding underwriting constraints and integrating interest expense into the broader tax strategy.

2. Tax-aware diversification of concentrated stock

We explored how a tax-aware long/short SMA could be used to systematically harvest losses and facilitate diversification out of a concentrated AVGO position over time, with the goal of minimizing tax friction.

3. Ordinary income mitigation

Because RSUs are taxed as ordinary income, we discussed pairing capital-loss strategies with tax-aware hedge fund exposure that can realize ordinary deductions and improve overall after-tax outcomes.

4. AI exposure beyond public equities

Instead of further concentrating risk in AI-adjacent public stocks, we reviewed ways private-market AI infrastructure investments could potentially provide broader exposure and more attractive entry points.

This type of tax-aware, institutional-style planning focuses on coordinating liquidity, diversification, and tax strategy — rather than solving each problem in isolation.