Performing Tax Harvesting (TAMP)

Performing Tax Harvesting (TAMP)

NOTE: The following documentation applies to AdvisorEngine TAMP clients only.

Once an Account Group has a Harvest Rule assigned, you can use the Tax Loss Harvesting tab to monitor for harvest opportunities and act on them.

When any part of an account group reaches the criteria threshold of the applied rule, it shows as an Opportunity in the Account Groups grid of Tax Loss Harvesting.

Note: The Tax Harvest logic manages the process by applying exclusions for 30 days. An exclusion is placed on all accounts in an account group when a security is sold from one account in that group.

To perform harvesting on an opportunity:

  1. Navigate to Investment Management > Tax Harvesting > Account Groups.
  2. Look for Account Groups that have any number greater than zero in the Opportunities column. (Tip: sort the Opportunities column in descending order.)
  3. Click the Opportunities number in the grid. The Harvest Opportunities dialog opens.
  4. Expand a ticker to view a list of all accounts that have that position.
  5. Expand an account to view relevant tax lot information for that account.
  6. Enter the desired Harvest Quantity for a chosen lot. Repeat for all tickers, accounts, and lots needed.
    7. Note: The ability to harvest Versus Specific Purchase (VSP) varies by custodian. If VSP trading is not enabled, transactions will be made according to the default accounting method at the custodian. Please contact your custodian for more information.
  7. Once the Harvest Quantity is set on all desired lots, click Start Harvesting in the bottom right.
  8. Set the following options:
    • Check Reopen after Wash Sale Period to remove the exclusions related to this position automatically after the 30 day Wash Sale period expires. Note that if a position is harvested from a model, selecting this option will remove the exclusions after the 30 days and the account will then trade to realign with the model.
    • Choose to Hold Cash or use a Substitution for the wash sale period. If you choose Substitution, search for an select the substitution symbol from the drop-down.
  9. After setting these options for all entries, click Submit Harvest Request to finalize.

From either tab of the Tax Loss Harvesting section, you can view current or past harvest requests by clicking View Harvest Requests in the upper right.

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