tax-loss-harvesting

To find tax-loss harvesting opportunities, you need to analyze your taxable account positions for unrealized losses. This Skill scans your portfolio to identify those losing positions and estimates the potential tax savings from harvesting them.

A wash sale occurs when you sell a security at a loss and buy a substantially identical one within 30 days. This Skill tracks wash sale windows and analyzes your transactions to ensure compliance with IRS wash sale rules.

Yes, you can maintain market exposure by purchasing replacement securities. This Skill recommends replacement securities that offer similar market exposure and risk/return characteristics to the security you sold at a loss.

Calculating tax savings from harvested losses involves applying your tax rate to the realized capital losses. This Skill calculates the potential tax savings automatically once it identifies your unrealized losses and executes the harvest.

The best way to avoid wash sales during tax planning is to select replacement securities that are not substantially identical. This Skill suggests appropriate replacement securities and actively tracks wash sale windows to maintain compliance.