If you’re a high-income earner or investor, you should get all 8 right.

1️⃣ Which strategy helps investors reduce capital gains taxes?

A) Sell investments before year-end to lock in profits

B) Avoid reporting investment gains

C) Tax-loss harvesting

D) Keep all investments in a savings account

2️⃣ What’s generally the most tax-efficient asset class?

A) Fixed Income

B) Private equity

C) Real estate

D) Mutual funds

3️⃣ How can W-2 earners legally reduce their taxable income?

A) Hold private credit in a taxable brokerage account

B) Deduct their mortgage interest twice

C) Invest in tax-aware hedge funds that realize ordinary losses

D) Use a traditional 401(k) but withdraw funds early

4️⃣ How can small business owners get $300k+ into a retirement plan each year?

A) Stick with just a SIMPLE IRA

B) Max out a Roth IRA

C) Use a 401(k) with profit share and a cash balance plan

D) Delay all retirement contributions until age 60

5️⃣ What’s the biggest tax mistake investors make with alternative investments?

A) Keeping it in a retirement account where it doesn’t generate enough yield

B) Using it as collateral for additional investments

C) Holding in a taxable brokerage account where the income is taxed at ordinary rates

D) Only investing in private funds with high fees

6️⃣ How can business owners legally avoid capital gains taxes when selling their business?

A) Use an irrevocable trust but still keep full control of the funds

B) Cash out everything immediately and move to a no-income-tax state

C) Long/short account that realizes large volume of capital losses

D) Convert the entire business into a Roth IRA before selling

7️⃣ How much can a long/short SMA harvest in capital losses during the first year?

A) 25%

B) 50%

C) 90%

D) 70%

8️⃣ If you want to borrow at the cheapest after-tax rate possible, how can you do it?

A) Personal Asset Loans (PALs)

B) Traditional mortgage

C) Box spreads

D) Securities-backed line of credit (SBLOC)

Answer Key:

They’re all C

The wealthiest investors structure their portfolios for tax efficiency - if you aren’t currently using these strategies, you’re missing out.

Did you get all 8 right? Let me know in the comments.