Tax Loss Harvesting
Advisor Tools
Tax Loss Harvesting
Harvest capital losses to offset clients’ capital gains
IBKR’s Tax Loss Harvesting is a powerful tool that allows financial advisors to reduce their clients’ tax liabilities. The Allocation Order Tool automates this process and makes it easy for advisors to harvest losses across multiple client accounts.
Key Features and Benefits
- Identify and capture losing positions, then allocate each potential loss across all of your clients’ investment portfolios. You decide whether to capture all or any percentage of each position loss.
- Track progress and measure the effectiveness of client tax loss harvesting strategies with detailed reports and analytics. These reports include information on realized and unrealized gains and losses, cost-basis information, and tax savings achieved through harvesting.
- Customize tax loss harvesting strategies based on each client’s unique situation to maximize their tax savings while minimizing the impact on their overall investment strategy. Advisors can set parameters to determine which investments to liquidate based on:
- Market Value
- % of NLV
- Unrealized P&L
- Cash Balance
- Buying Power
Investors can also proactively manage gains and losses by changing the tax-lot matching method using the IBKR Tax Optimizer.
Disclosures
The projections or other information generated by Tax Loss Harvesting or Tax Optimizer regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Please note that results may vary with use of the tool over time.
The information provided here is not intended to serve as tax advice and should not be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local, or other tax statutes or regulations. It is also important to acknowledge that this information cannot be relied upon to resolve any tax issues.