Start With Tax Strategy
Group Accounts Carefully
Avoid grouping unrelated accounts.
Incorrect grouping may restrict trading in accounts due to tax group restrictions
Match Rules to Custodian Type
VSP
Use lot-level rules.
Non-VSP
Use position-level rules.
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
Avoid Over-Harvesting
Treat TLH as an Ongoing Process
Regularly review:
Harvest Rules
Account Group Constituents
Harvest Requests (history)