Tax-Loss Harvesting

What problem does it solve?

This Skill identifies opportunities to sell investments at a loss to offset capital gains taxes, thereby improving a client's after-tax returns.

Core Features & Use Cases

• Identify Loss Candidates: Scans taxable accounts for securities with unrealized losses, prioritizing based on loss amount and holding period.
• Tax Impact Analysis: Calculates potential tax savings by estimating the offset of realized gains and the benefit of net loss deductions.
• Replacement Security Suggestions: Recommends alternative, non-substantially identical securities to maintain portfolio exposure while avoiding wash sales.
• Wash Sale Rule Management: Provides a framework to check and track wash sale windows across all household accounts.
• Execution Planning: Generates a structured plan for executing trades, including sell and buy orders, estimated proceeds, and loss amounts.
• Use Case: A client has significant unrealized losses in their stock portfolio and substantial short-term capital gains. This Skill can identify specific stocks to sell, suggest suitable replacements like broad-market ETFs, and outline the trades to minimize the client's tax liability for the year.

Quick Start

Use the tax-loss harvesting skill to identify opportunities in the client's taxable accounts and suggest replacement securities.