A: The SMArtX Tax Loss Harvester helps advisors identify opportunities to realize short- and long-term capital gains and losses that can be used to offset capital gains or ordinary income, while monitoring for wash sales across related accounts

A: Wash sale monitoring applies across all accounts within the same Account Group (tax household). When a security is sold at a loss in one account, exclusions are applied across the entire Account Group.

A: No. An account can only be assigned to one Account Group at a time.

A: An Account Group represents a tax household. It combines one or more accounts that share the same tax goals and / or filing status and allows SMArtX to monitor for wash sales across those accounts.

A: Yes. An Account Group can contain a single account or multiple accounts.

A: The account must be removed from its existing Account Group before it can be added to another group.

A: A Harvest Rule defines the criteria used to identify harvesting opportunities, such as minimum dollar or percentage gain/loss thresholds and whether the rule applies at the position level, lot level, or both.

A: Yes. Once created, a Harvest Rule can be applied to any number of Account Groups.

A: This depends on your strategy. Dollar-based rules provide more precise tax targeting, while percentage-based rules may be better suited for portfolios of varying sizes. Many advisors use a combination depending on client objectives.

A: VSP refers to a custodian’s ability to execute trades against specific tax lots via automated order submission, regardless of the account’s default tax lot relief method.

A: When a custodian supports VSP, advisors can selectively harvest specific lots without triggering the sale of gain lots. When VSP is not supported, trades are executed based on the custodian’s default tax lot methodology (such as FIFO).

A: SMArtX identifies custodians as VSP or non-VSP within the platform. If you are unsure, confirm directly with your custodian.

A: For non-VSP custodians, Harvest Rules should be applied at the position level, not the lot level.

A: The platform may display only the loss lots that meet the rule, but the custodian may still sell gain lots first based on its tax lot relief method. This can result in a different realized gain/loss than what is displayed in SMArtX.

A: Yes. For custodians that support VSP, advisors can harvest an entire lot or specify a partial amount. For non-VSP custodians, quantities are entered at the position level and applied based on the default tax lot depletion method.

A: Yes. Harvesting opportunities are grouped by symbol and then broken out by account within an Account Group. Alternatively establishing a Harvest Schedule can run automatically across all tax groups assigned to the harvest rule.

A: Advisors can choose to either hold the proceeds in cash or purchase a replacement security for each harvested symbol.

A: When a security is harvested, SMArtX applies an exclusion across the Account Group that prevents the same or substantially identical security from being repurchased for 31 days.

A: This option automatically removes the exclusion 31 days after the harvest is executed, allowing the harvest position to be repurchased and the replacement sold.

A: The replacement instruction and exclusion remain in place until the advisor manually reverses the harvest or removes the exclusion.

OR

A: When the wash sale period expires, exclusions are removed and the account will automatically trade to realign with the model.

A: The advisor must submit the account through the rebalancer to realign the portfolio with its target allocations.

A: All current and historical harvest requests can be viewed on the View Harvest Requests page, accessible from the main Tax Loss Harvesting screen.

A: Each request shows the harvested securities, replacement instructions, estimated tax impact, submission status, and wash sale expiration details.

A: Reviewing harvest requests helps ensure that exclusions are removed when appropriate and that replacement instructions align with the advisor’s ongoing portfolio strategy.