Leveraging the J-Curve for Tax Efficiency

 

 

 

 

 

 

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Chart above is hypothetical, for illustrative purposes only and should not be construed as a guarantee of the actual performance of any investment.

 

Early Years

Value drops due to upfront costs: management, acquisition, development expenses.

 

Conversion Timing

Convert during the low point of the J-curve, paying taxes on temporarily depressed valuation.

 

Later Years

Value recovers and rises as asset is built, improved, leased, or sold—all tax-free growth.