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Rebalancing System Settings: Tax Loss Rebalance Settings

See Sell Entire Security/Sell Only Losses in Action

Introduction

Tax Loss Rebalance Settings allow you to change rebalance behavior during a tax loss harvesting rebalance.

This setting only applies to the tax loss harvesting rebalance types: Tax Loss Harvesting & Rebalance and Tax Loss Harvesting Rebalance.

Available Settings

Choose one of the following options:

Setting Option	More Information
Sell entire security	Tamarac Trading will sell out of the entire security if the net loss of all lots exceeds the loss thresholds specified in each account's settings.
Sell only losses	Tamarac Trading will sell only the lots that have incurred losses for the security that is beyond the loss threshold you specified, and will not sell the lots that do not meet the loss criteria or have gains.

See Sell Entire Security/Sell Only Losses in Action

A client's tax loss harvesting thresholds are 15% and $5,000. The client has a security with 10 lots. Seven of those lots have gains and three have losses, and the average loss and net loss surpass the account thresholds:

With the Sell only losses option selected, when you perform a Tax Loss Harvesting rebalance, only the three lots with losses will be sold. The losses on the individual lots do not need to meet the loss threshold, only the average of losses for the security:
With the Sell entire security option selected, when you perform a Tax Loss Harvesting rebalance, all 10 lots of the security will be sold:

Contents

Introduction

Available Settings

See Sell Entire Security/Sell Only Losses in Action