Launching the Tax Optimizer

Instructions

You can change your trades' cost basis directly within TWS using the built-in Tax Optimizer tool. You can try up to seven different automated matching methods across all lots, methods like Last In, First Out or Maximize Long Term Gain. You can apply a method to a single closing trade, or manually match a specific open lot to a specific closing trade. See potential profit and loss using your selected method(s), broken out by long-term and short-term gain or loss.

To Open Tax Optimizer

  1. Right-click an instrument in your Portfolio and select Change Tax Lots.

    The change tax lots menu in TWS.

  2. A pop-up message will appear asking if you would like to open the Tax Loss Harvesting tool. Select No.

    A Tax Loss Harvesting Tool Pop-Up Message

  3. The Tax Optimizer screen will appear showing your closing trades on the left hand side, and your open lots on the right.

    The Tax Optimizer window in TWS.

  4. To modify the matching method for a trade, click the Method drop-down menu across the top of the window and select a different method.

    To modify the default matching method that is automatically applied across all available lots, navigate to the Client Portal and select Reporting > Tax Documents.

 

Additional Resources

Learn About Tax Optimizer at IBKR Campus

Visit the Trader Workstation Website

Visit the Tax Lot Matching Method FAQs