Setting an Annual Tax Budget

Setting an Annual Tax Budget

Firms utilizing the Smartleaf integration can set an annual tax budget on an account to prevent trades from generating taxes beyond the allowed amount. For each portfolio, users can specify the maximum amount of taxes (not capital gains) that should be generated by trading during the calendar year. The annual tax budget may be entered as either a dollar amount or a percentage of the portfolio holdings, but not both.

Note: Tax Budgeting is a premium Smartleaf integration feature. Contact AdvisorEngine Sales if you need to upgrade your integration subscription.
  1. Navigate to Manage Clients > Rebalancing.
  2. Search for and open the account to a tax budget for.
  3. Click the Profile tab.
  4. On the far right click Edit Profile.
  5. Expand Taxes.
  6. Set the Annual Budget as either a fixed dollar amount or a percentage of total holdings.
  7. If you wish to spread the annual budget across intervals, select an interval from the To Be Prorated drop-down.
  8. Click Recalculate to review the changes in the summary table.
  9. Click Save and Re-Analyze at the bottom to commit your changes.

Full feature details: Annual Tax Budget PDF.

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