Tax-loss harvesting is a tax strategy that involves selling nonprofitable investments at a loss in order to offset or reduce capital gains taxes incurred through the sale of investments for a profit. The Tax Harvesting tab is designed to help advisors identify and sell securities in order to offset the amount of capital gains tax due on the sale of other securities.

The basic process for harvesting is as follows:

• Create a harvest Rule that is used to identify opportunities.
• Apply the Rule to an Account Group.
• Check regularly for identified Opportunities and act on them if appropriate.

The Tax Loss Harvesting tab is divided into two sub-tabs: Account Groups and Harvest Rules.

• Account Groups represent tax households. Tax households are made up of accounts that are filed under the same tax return.
• Harvest Rules are the parameters that determine which positions and lots are presented as harvest opportunities.

Account Groups Tab

The Account Groups tab displays all defined account groups and their assigned harvest rule. Groups can be created, edited, or assigned rules from here. This is also where you can check for existing harvest opportunities and act on them.

Unassigned groups appear in the second table under the main table.

Tax lots for assigned groups can be viewing by clicking > View Tax Lots.

Harvest Rules Tab

The Harvest Rules tab displays all currently defined harvest rules with their parameters and the number of groups to which they are assigned. Rules may also be created or edited from here.

Using Tax Harvesting

See the following articles for step-by-step guidance on Tax Harvesting.

• Creating and Editing Tax Harvest Rules
• Creating and Editing Tax Harvest Account Groups
• Using Tax Harvest Opportunities