Mezzanine Financing Taxes 2026: What HNW Investors Must Know

Mezzanine financing offers yields of 12–20% — but for high-net-worth investors, the IRS can take 40% or more if you're not planning ahead. In this video, we break down exactly how mezzanine income is taxed in 2026, including ordinary income rates, PIK phantom income, the 3.8% Net Investment Income Tax, and how equity warrants can shift gains to the lower 20% capital gains rate. We also cover the biggest planning opportunities available right now: — Qualified Opportunity Zone reinvestment (now permanently extended under the OBBBA) — Investment interest expense deductions — Tax-loss harvesting to offset mezzanine gains — Entity structuring to optimize pass-through treatment Plus, we walk through a real case study where a HNW investor saved $68,400 in a single year through proactive planning. If you're invested in mezzanine financing or considering it, this is essential viewing before your next deal. Follow for more tax tips

Added 16 Apr 2026