Tax-Loss Harvesting
Tax-loss harvesting (TLH) sells positions at a loss to offset realized gains and up to $3,000 of ordinary income per year, deferring tax while keeping your market exposure.
How to use it here
- Open Tax-Loss Harvesting (or the Tax hub → Harvesting tab).
- The platform scans your lots and ranks candidates by harvestable loss, showing the estimated tax benefit at your marginal rate.
- Review the suggested replacement security — a correlated but not substantially identical holding that keeps your exposure while avoiding a wash sale.
- Approve to generate a proposal; execution stays gated behind your confirmation.
Avoiding wash sales
A wash sale disallows the loss if you buy the same or a "substantially identical" security within 30 days before or after the sale. The built-in Wash-Sale Scanner flags conflicts across all your accounts and enforces the 61-day window.
Automated harvesting
For direct-indexed accounts, the daily TLH scheduler harvests opportunities automatically and never trades the same symbol back within the window. See Direct Indexing.
Tax rules are complex and personal — this is not tax advice. Confirm with your accountant before year-end.