tax-loss-harvesting

What problem does it solve?

This Skill automates the complex process of tax-loss harvesting (TLH), helping users minimize their tax liabilities by strategically selling investments at a loss.

Core Features & Use Cases

• Candidate Identification: Scans portfolios for positions with unrealized losses meeting materiality and holding period criteria.
• Gain/Loss Budgeting: Calculates the optimal harvest amount based on realized gains, planned gains, and loss carryforwards.
• Replacement Security Selection: Identifies suitable replacements to maintain market exposure without triggering wash-sale rules.
• Wash-Sale Compliance: Tracks the 61-day window across all household accounts to prevent disallowed losses.
• Tax Savings Calculation: Quantifies federal, state, and NIIT savings from proposed harvests.
• Use Case: A user with $10,000 in unrealized losses and $5,000 in realized gains can use this skill to harvest the losses, offset the gains, and potentially reduce their tax bill by thousands of dollars.

Quick Start

Use the tax-loss-harvesting skill to identify candidates for tax-loss harvesting in my portfolio.