Tax Loss Harvesting

Advisor Tools

Tax Loss Harvesting

Harvest capital losses to offset clients’ capital gains

IBKR’s Tax Loss Harvesting is a powerful tool that allows financial advisors to reduce their clients’ tax liabilities. The Allocation Order Tool automates this process and makes it easy for advisors to harvest losses across multiple client accounts.

Key Features and Benefits

  • Identify and capture losing positions, then allocate each potential loss across your clients’ investment portfolios. You decide whether to capture all or any percentage of each position loss.
  • Track progress and measure the effectiveness of client tax loss harvesting strategies with detailed reports and analytics. These reports include information on realized and unrealized gains and losses, cost-basis information, and tax savings achieved through harvesting.
  • Swap out a closed position with another instrument using the "Replace with' feature. In addition to closing out losing positions to harvest losses, you can close out and swap the entire position using the Sell x% of Entire positions feature.
  • Uncheck any account to leave positions intact within that account.

Investors can also proactively manage gains and losses by changing the tax-lot matching method using the IBKR Tax Optimizer.

Tax Loss Harvesting

Disclosures

The projections or other information generated by Tax Loss Harvesting or Tax Optimizer regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Please note that results may vary with use of the tool over time.

The information provided here is not intended to serve as tax advice and should not be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local, or other tax statutes or regulations. It is also important to acknowledge that this information cannot be relied upon to resolve any tax issues.