Interactive Brokers is continuously increasing the capacities of its TWS platform.
The broker offers a Tax Loss Harvest feature to help advisors get deductions on capital losses. To access it, right-click a position and select Tax Loss Harvest. You can then close losing positions and replace them with an asset of your choosing.
Select your filters in the Allocation and Portfolio Segment drop-down to choose which groups and segments of positions you want to analyze. If you don’t need to replace any losing positions, choose All/All as your filter.
In the Harvest Losses panel, set the percentage of losing positions that you wish to sell. Then press “Apply” to save your changes.
You can optionally check “Replace with” and click Find replacement to choose an instrument that will open a position, instead of the one you closed. Make sure to select a model, a custom index, or an independent to use this. When you create the order, you will see a sell order on the original asset as well as a buy order on the replacement.
Once you have chosen which positions to harvest, you can use the Filter Accounts section to further narrow down which accounts will take part in the activity by assigning a maximum loss threshold.
The Orders section will then display a total row that shows the difference before and after the action, the estimated loss, and the final cash amount that it will lead to(based on adjustable price).
To begin harvesting losses, click Create TLH Orders. To submit the orders, press the submit button within each row.
However, the Tax Loss Harvest tool only works for long positions and accounts with both long and short positions are not eligible for it.
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