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Replacement Securities & Wash Sales

Replacement Options

For each harvested position advisors may:

  • Hold cash
    OR

  • Purchase a replacement security

Wash Sale Protection

SMArtX applies exclusions for 31 days across the Account Group to help prevent wash sales.

Users may choose to hold cash or the replacement security after the wash sale period OR choose Reopen After Wash Sale Period.

Reopen After Wash Sale Period

Enabled

  • Exclusions expire automatically after 31 days.

  • Replacement security sold

  • Harvested security repurchased.

Disabled

  • Exclusions remain until manually removed.

  • Replacement security will not be sold.

  • Harvested security will not be repurchased.

What Happens After Reopening?

Model-Managed Portfolios

Positions automatically realign with the model.

Advisor-Managed Portfolios

Advisors must manually rebalance using the rebalancer.

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