Harvest Capital Losses

Financial Advisors can use the Tax Loss Harvesting tool to project, preview and allocate trades to take advantage of potential capital losses for all or some of your invested clients.

To harvest capital losses

  1. From the Portfolio page, right-click a position with an expected loss and select Tax Loss Harvesting. This might include:
  • A position with negative Unrealized P&L (add the Unrealized P&L column using the Configure wrench icon in the top right corner).

  • A long/short position with Average Price higher/lower than the price at which you expect to liquidate the position.

  1. In the Tax Loss Harvesting Tool, define prices and filters to show projected capital losses.
  1. Select the side - Buy or Sell.

  2. From the View Capital Loss/Gain field, choose a term (Long Term, Short Term, Any)

  3. Set the Reference Price. This is your projected price at which the asset will liquidate, resulting in the capital loss.

  4. In the Filter section, check to only include accounts with positions that will show a capital loss. Click Apply. Note that two new columns, Position at Loss and Projected Term Loss are displayed.

  5. In the Allocation section, enter a percentage of each account's position to liquidate in order to harvest the capital loss. Click Apply. This action populates the Quantity column with the selected percentage based on the Position at Loss value.

Review the accounts that will be affected by this action. Uncheck any that you want to exclude. When done, click Set Allocation to create and save an allocation order to the Portfolio page.

You must manually submit the allocation order.

In cases where the order does not fully execute or when you have elected to close only a portion of the position, we will apply to lots that maximize your capital loss.

On the next business day following order execution, you can verify the lot allocation by configuring a custom Activity Statement in the Reports section of Client Portal.

To create a custom Activity report in Client Portal to show lot allocations:

Enter a report name that describes the action, for example "VerifyLossLotAllocations."

Select "Activity" as the statement type.

Check the "Trades" box.

Toggle the feature "Hide Details for Positions, Trades and Client Fees Sections" to NO.

Continue to save the report.