tax-loss-harvesting

Tax loss harvesting offsets capital gains by strategically selling investments at a loss. This workflow calculates the optimal harvest amount based on your realized gains, planned gains, and loss carryforwards to minimize tax liabilities across multiple accounts.

The wash sale rule disallows losses if you buy a substantially identical security within a 61-day window. This workflow tracks wash-sale compliance across all household accounts and identifies suitable replacement securities to maintain market exposure without triggering violations.

Calculating tax savings from harvesting losses requires quantifying federal, state, and NIIT savings from proposed harvests. This process evaluates your portfolio holdings and applicable tax rates to accurately measure the total tax alpha generated by offsetting gains.

Yes, tax loss harvesting can be applied across multiple accounts. The workflow identifies harvest candidates meeting materiality and holding period criteria while tracking the 61-day wash-sale window across your entire household to ensure compliance.

Selecting replacement securities when harvesting losses involves finding suitable alternatives that maintain your market exposure without triggering wash-sale rules. The workflow evaluates candidates to ensure your portfolio risk profile remains consistent during the harvest period.