Firms utilizing the Smartleaf integration may manually set accounts to deliberately perform tax-loss harvesting throughout the year.

Harvesting Profile Options

Two profile options are available as described here.

(Default) Year-Round with Year-End Increase

The default loss harvesting profile. Smartleaf will seek to actively harvest losses at an increasingly aggressive rate over the course of the year. Typical loss harvesting thresholds range from roughly 80% of basis at the beginning of the year to as high as 95% by December 1.

Please note that the default profile may be updated in the future, at which point users will be notified in advance of any changes.

The profile thresholds are not absolute. Smartleaf’s loss harvesting decisions also depend on the following additional factors: time to year-end, time to lot purchase anniversary, security volatility, transaction costs, position size, and the amount of tracking error (if any) that will be introduced.

No Active Loss Harvesting

Disables active loss harvesting. Smartleaf will not actively seek out loss harvesting opportunities, but will still seek to minimize taxes by deferring gains.

Although Smartleaf will not actively seek out loss harvesting opportunities for accounts with this profile, the system may still recommend sales at a loss.

Enabling Ongoing Tax-Loss Harvesting

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. Adjust the Tax Loss Harvesting Profile drop-down as needed.
7. Click Save and Re-Analyze at the bottom to commit your changes.

Full feature details: Ongoing Tax-Loss Harvesting PDF.