Tax Optimizer

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.

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

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

  4. You may match your lots accordingly.

  5. 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.

For more information on Tax Lot Matching Methods, visit the user guide or FAQs.