Multi-Period After-Tax Reporting: A Practical Solution

The Journal of Wealth Management, Winter 2018, 21 (3) 11-25; DOI: 10.3905/jwm.2018.21.3.011

36 Pages Posted: 30 Mar 2018 Last revised: 1 Feb 2020

See all articles by Nathan Sosner

Nathan Sosner

AQR Capital Management, LLC

Rodney N Sullivan

University of Virginia, Darden Graduate School of Business

Liliana Urrutia

AQR Capital Management, LLC

Date Written: August 20, 2018

Abstract

After-tax performance reporting is critical for taxable investors but is unfortunately often overlooked due, in part, to its complexity and lack of offerings in the space. Instead, most performance reporting models available today provide only pre-tax reporting, ignoring the after-tax aspects so relevant for taxable investors. In this paper, we seek to resolve this issue by proposing an effective and workable after-tax performance report aimed at enhancing wealth preservation and accumulation for taxable investors. We also outline and offer justification for the various choices that we make in our report in the hope that others will adopt our proposed solution, but also review, comment, and improve on it.

Keywords: after tax reporting, tax efficient investing, wealth management

JEL Classification: G00, G11

Suggested Citation

Sosner, Nathan and Sullivan, Rodney N and Urrutia, Liliana, Multi-Period After-Tax Reporting: A Practical Solution (August 20, 2018). The Journal of Wealth Management, Winter 2018, 21 (3) 11-25; DOI: 10.3905/jwm.2018.21.3.011. Available at SSRN: https://ssrn.com/abstract=3152329 or http://dx.doi.org/10.2139/ssrn.3152329

Nathan Sosner

AQR Capital Management, LLC ( email )

One Greenwich Plaza
Greenwich, CT 06830
United States

Rodney N Sullivan (Contact Author)

University of Virginia, Darden Graduate School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-243-0644 (Phone)

Liliana Urrutia

AQR Capital Management, LLC ( email )

Two Greenwich Plaza, 3rd Floor
Greenwich, CT 06830
United States

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