Tax-Loss Harvesting

Identify tax-loss harvesting opportunities by analyzing unrealized losses across taxable accounts to realize losses that offset capital gains and optimize after-tax returns. The process outputs candidate lists of securities holding unrealized losses for execution.

A wash sale occurs when you repurchase a substantially identical security within a restricted window. Tracking wash-sale windows ensures you avoid disallowed losses by monitoring replacement security transactions across the required timeframe.

Maintain market exposure by selecting replacement securities that preserve your original asset allocation without triggering wash sale rules. The system proposes compliant replacement options that keep your portfolio invested while realizing the tax loss.

Estimate tax savings by calculating the potential offset value of realized losses against your capital gains. The output includes computed potential tax savings alongside the candidate lists and replacement suggestions to guide your execution.

The best way to generate an execution plan is to aggregate unrealized losses, match them with compliant replacement securities, and track wash-sale windows. This yields a structured execution plan and post-harvest tracking output to optimize after-tax returns.

Avoid tax-loss harvesting when wash-sale windows prevent effective replacement security selection or when unrealized losses are insufficient to generate meaningful tax savings. Limitations arise if maintaining precise market exposure is not feasible without violating wash-sale rules.