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Understanding Harvest Rules

What is a Harvest Rule?

Harvest Rules define the criteria used to identify harvesting opportunities.

Rules can evaluate:

  • Dollar gains/losses

  • Percentage gains/losses

  • Long-term vs short-term positions

Rule Types

Position-Level Rules

Evaluate the entire position.

Best used for:

  • Non-VSP custodians

Lot-Level Rules

Evaluate individual tax lots.

Best used for:

  • VSP custodians

Both

Evaluates:

  • Positions

  • Individual lots

Best Practices

Dollar-Based Rules

Best for:

  • Precise tax targeting

Percentage-Based Rules

Best for:

  • Scaling across different account sizes

Important Consideration

Custodian capabilities heavily impact which rule type should be used.

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