I wanted to share an important update to our promissory note offering at Eppler Capital Funds.
We now have the ability to structure future investments in a way that allows investors to receive long-term capital gains treatment instead of ordinary income.
This is an investor-level election made at the time of investment, giving you flexibility in how your returns are ultimately taxed.
Here’s a simple example:
If an investor allocates $100,000 into a 5-year note at our 9% rate, the investment grows to $156,568.10 at maturity. Under this structure, the $56,568.10 in profit is reported as a long-term capital gain, rather than ordinary income.
For many investors, this can be a more tax-efficient outcome compared to traditional interest income.
This new structure will be available on all future investments, while our current income-based options will remain in place for investors who prefer that approach.
As always, I recommend discussing your specific situation with your tax advisor to determine what makes the most sense for you.
If you’d like to walk through how this works or see if it fits your investment strategy, feel free to schedule time with me.
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