Group Accounts Carefully
Avoid grouping unrelated accounts.
Incorrect grouping may restrict trading in accounts due to tax group restrictions
Match Rules to Custodian Type
Use position-based rules when the cumulative loss or gain should be used to determine if a position meets the rule criteria; use lot-based rules when the loss or gain of specific tax lots should be used to determine if a position meets the rule criteria; use position-level rules for non-VSP eligible custodians.
Use Meaningful Thresholds
Avoid:
Over-trading
Harvesting immaterial losses
Choose Replacement Securities Carefully
Replacements should:
Maintain market exposure
Avoid wash sale conflicts
Align with portfolio strategy
Rebalance Managed Portfolio Sleeves After Harvesting
Replacement buys and buybacks are not automatic in Managed Portfolio sleeves. To keep Managed Portfolio sleeves invested:
Rebalance after each harvest to buy the replacement security
Rebalance again when the wash sale period ends to buy back the original symbol
Regularly check for accounts holding harvest proceeds in cash
Avoid Over-Harvesting
Treat TLH as an Ongoing Process
Regularly review:
Harvest Rules
Account Group Constituents
Harvest Requests (history)