Overview
The SMArtX Tax Loss Harvester (TLH) is designed to provide advisors with a way to identify trading opportunities that will realize long and short term gains or losses to offset potential tax obligations.
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How to
From the Home Dashboard > Tax Harvesting in the left navigation menu
Account Groups
Account Groups need to be created and attached to a harvest rule before opportunities will be generated. SMArtX will analyze lots and positions for potential opportunities across all accounts in the group, while guarding against wash sales.
Manage Account Groups
From the Account Groups screen you may Edit Group Details, Add Accounts, View Tax Lots, or Delete Group by selecting the three vertical dot icon on the far right of the Account Group name for the dropdown options.
Edit Account Group Details
Select the Edit Group Details option from the dropdown of the 3 dot icon (shown above) OR
Select the Group name
Edit Group Slide Out
Update group details, set:
Tax Group Name
Filing Status
Tax Year Goals
Note: filing status and tax year goals inform summary information displayed during harvest events and DO NOT prevent gains or losses from being generated above/below those values.
Select Harvesting Rule OR Create New Rule
Select the accounts you want monitored for wash sales, and customize which accounts to exclude from harvesting
Save Group
Create a New Group Account
Select the + Create New Account Group button
New Group slide out will pop — fill out details within the screen adding:
Tax Group Name
Filing Status
Tax Year Goals
Note: filing status and tax year goals inform summary information displayed during harvest events and DO NOT prevent gains or losses from being generated above/below those values.
Select Harvesting rule or Create New Rule
Select the accounts you want monitored for wash sales, and customize which accounts to exclude from harvesting
Save Group
Harvest Rules
Harvest Rules defines what will be considered an opportunity for each account group attached. Set specific criteria like minimum dollar threshold, percent of the account, a threshold for percentage gain/loss that triggers a harvest, as well as whether the rule applies to lots, positions, or both.
Select the Harvest Rules tab to view your current Harvest Rules in the list:
Select the 3 dot vertical icon at any rule
Use the drop-down to edit, assign, or remove as needed.
⚠️ Advisor-managed (APM) sleeves
Automatic replacement purchases and buybacks apply to model sleeves. For APM sleeves, rebalance after the harvest to buy the replacement, and rebalance again after the wash sale period ends to buy back the harvested symbol. Until you rebalance, harvest proceeds stay in cash.
Edit Advisor Group Rule or Create New in the Side Sheet
Set specific criteria:
Minimum dollar loss
Percent of the account
Threshold for percentage gain/loss that triggers a harvest
Adjust for Custodian Types — Select between applying rules against positions, lots, or both:
Positions — rules will look at the position level to determine if the objective can be met and return positions that meet the rule
Lots — rules will look at the lot level to determine if the objective can be met and return only those lots that apply
Positions and Lots — the rules will look at both positions and lots to determine if the objective can be met and return all data points that apply
Enable Default Replacement Securities:
The rule can be configured to auto-purchase a specific security when a loss is generated. If the scheduler is used, the replacement security will be sold and the model position repurchased following the wash sale period.
This setting applies across all accounts and positions tied to the rule, but you can edit it manually per trade if needed
Harvest Scheduler
With this automation, opportunities are generated, approved, and sent to market without manual review.
Select Scheduler On
Choose your start date
Select a recurring schedule using the Repeats dropdown
Decide how often each Account Group tied to a Harvest Rule is reviewed — monthly is a popular choice
If desired, choose a Default Replacement Security, which will be purchased in place of any loss, and automatically reversed following the wash sale period.
⚠️ Advisor-managed (APM) sleeves
The scheduler sends harvest sales for all sleeves, but replacement purchases and buybacks are automatic only in model sleeves. For APM sleeves, rebalance after each scheduled harvest to buy the replacement, and again after the wash sale period ends to buy back the harvested symbol.
Once complete, Review Side Sheet and Save Rule
Conduct a Manual Harvest Event
To begin:
From the Account Groups > View the Opportunities Column for View Hyperlink
Side Sheet lists all positions eligible for harvesting
Scroll through the available lots and positions
For VSP Tradable custodians, Select specific lots.
For Non-VSP Tradable custodians, Specify position quantity to harvest.
Handle both VSP and non-VSP accounts within the same event.
Make necessary quantity edits, then click Start Harvesting.
Review the summary of all sales, settings, and replacement securities
Make any Substitutions — e.g. opt to hold cash instead by selecting the appropriate setting.
Submit your Harvest request to trade
View Harvest Requests
Use to view current and historical harvest requests
Details from each harvest request can be reviewed including the harvested symbols, the substitute instruction and the estimated tax impact
Review this page to ensure that all TLH requests have been reversed upon expiration of the wash sale period or as the advisor sees fit
Use the Status dropdown to view details including submission time, wash sale status, and when positions are eligible for reversal.
Click an Account Group's name to view details: sold positions, dates, amounts, and other relevant data.
