By Greg Fedorinchik, Managing Director, Equity Capital Markets
Comparing returns for taxable accounts on an “apples-to-apples” basis requires that investments be compared on an after-tax basis. Many real estate investments are inherently more tax efficient than other types of passive investments—and that is particularly so with respect to equity investments in real estate development projects or funds like those offered by NexMetro Communities. Below, the NexMetro Financial Planning and Analysis team estimates the effective tax rate for some of our recent project sales and discusses their tax efficiency relative to other types of growth investments.