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 losses to offset the tax obligations of long and short term gains.
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How to
From the Home Dashboard > Tax Harvesting in the left navigation menu
Account Groups
Account Groups are linked to harvest rules, the configurable values against which you want your accounts to be analyzed
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 Year Goals
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
Selecting Harvesting rules
Create New Rule
Account Number
Harvest Rules
Harvest Rules define how each Account Group is analyzed for what securities and opportunities to be considered. Set specific criteria like minimum dollar loss, percent of the account, or threshold for percentage gain/loss that triggers a harvest.
Select the Harvest Rules tab to view your current Harvest Rules in the list
Select the 3 dot vertical icon at any rule to
Use the drop-down to edit, assign, or remove as needed.
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 all lots for that position whether all lots meet the rule individually
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 -
Configure it to auto-purchase a specific security when a loss occurs within the 31-day 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
Once complete, Review Side Sheet and Save Rule
From the Account Group the New Rule can be Added
Conduct a Harvest Event
To begin:
From the Accounts Groups > View the Opportunities Colum for Number Hyperlink
Side Sheet lists all flagged positions for harvesting
Scroll through the available lots and positions for trading
For custodians supporting VSP, Select specific lots or multiple positions across different accounts at once.
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 and the default replacement security tied to the rule
Make any Substitutions - Ex. 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.
