Overview
The Tax Harvester identifies trading opportunities that realize long- and short-term losses to offset the tax obligations of long- and short-term gains.
The tool:
Monitors wash sales
Supports replacement securities
Tracks exclusions across related accounts
Supports both models and advisor-managed portfolios
Why Advisors Use TLH
Advisors use TLH to:
Improve after-tax outcomes
Offset realized gains
Harvest losses during market volatility
Maintain portfolio exposure while managing taxes
Key Concepts
Account Groups | Account Groups represent tax households and allow wash sale monitoring across related accounts. |
Harvest Rules | The rule specifies Minimum Gains and/or Losses to harvest, and whether it applies to Positions, Lots, or Both. |
Replacement Securities |
Replacement securities help maintain market exposure during the wash sale period. |
Scheduling | Automated harvesting can be scheduled to identify opportunities and send harvest sales without manual review. Advisor-managed (APM) sleeves still need a rebalance to buy the replacement and, after the wash sale period, to buy back the original. |
Wash Sale Monitoring |
SMArtX automatically applies exclusions across the Account Group to help prevent wash sales for 30 days. |
Accessing TLH
Navigate to:
Left Navigation → Tax Harvesting
From the Tax Harvesting page, users manage Account Groups (groups with shared tax goals) and Harvest Rules (criteria used to identify opportunities).
View Harvest Requests, on the main Tax Harvesting page, is used to confirm submitted requests, track completed and pending activity, and review historical outcomes.