Tax-loss harvesting is a strategy designed to maximize after-tax returns by selling investments at a loss to offset capital gains elsewhere. This means less tax paid and more capital to invest and potentially grow.
Tax-loss harvesting can increase the after-tax return on your stocks by up to 29%, based on our analysis of a Vanguard study.
How does the analysis identify tax-loss harvesting signals?
The analysis reconstructs historical tax lots using deterministic rules and evaluates open positions for unrealised losses that meet predefined mechanical thresholds. Where relevant, it also compares exposures to identify non-identical assets with high historical correlation, without making execution or suitability assumptions.
Does the platform execute trades or provide tax advice?
No. The platform performs analytical computations only. It does not execute trades, provide investment or tax advice, or determine whether one asset should be replaced by another. All outputs are intended for professional review and documentation.
What factors influence the results shown in the analysis?
Results depend on the trade history provided, current market prices, configured thresholds, and portfolio composition. Exposure similarity is assessed using statistical measures of correlation and does not imply identical risk, return, or tax treatment. Outcomes may vary based on market conditions and individual circumstances.
How accurate is the analysis if trade data is incomplete or inconsistent?
The analysis reflects only the trade data provided. Missing trades, incomplete histories, or inconsistent pricing may affect tax-lot reconstruction and downstream results. The platform highlights data issues where possible, but accuracy ultimately depends on input completeness.
Are the results specific to any tax jurisdiction?
No. The core analysis is jurisdiction-agnostic and focuses on mechanically observable portfolio data. Jurisdiction-specific tax treatment, rates, and legal interpretations are intentionally excluded and must be assessed separately.
How are exposure similarities measured?
Exposure similarity is assessed using historical correlation and related statistical measures. Assets identified as highly correlated are not identical and may differ in index construction, risk characteristics, and tax treatment. Where applicable, the analysis presents exposure alternatives as informational options for user review and decision-making.
What assets are assessed for exposure similarity?
Exposure similarity analysis is currently limited to exchange-traded funds (ETFs). The platform does not assess or present exposure alternatives for individual stocks, bonds, or other securities. However, realised gains and losses are calculated across all supported asset types provided in the trade data, including stocks and bonds.
