Broker Check

Salt Lake City Office

2150 East 1300 South,

Suite 500
Salt Lake City, UT 84106

Tax Overlay Management

What is it? How does it work?

A disciplined and flexible implementation process with robust tax management that preserves the integrity of the underlying investment strategies.
Incorporating tax loss harvesting, short term gain deferral and tax lot selection throughout the year and not just at year end.

Tax Loss Harvesting

  • Identifying unrealized losses in an account and realizing them, so they can be used to offset gains
  • Accounts go thru loss harvesting throughout the year to take advantage of losses that may not be available only at the end of the year
  • The process incorporates sophisticated risk management tools to ensure the portfolio doesn’t deviate excessively from the desired allocation
  • We replace the loss harvested security exposures with exchange traded funds during the wash sale to keep it in line with its asset class target weightings.

Short Term Gain Deferral

  • The difference between long-term and short term capital gains can be significant to some investors
  • We carefully consider positions that are close to the one-year holding period that have significant gains

Wash Sale Rule

  • IRS Rule prevents taxpayers from using a realized loss to offset gains if they purchase the same or similar security within 30 days of the sale
  • Cash inflows into accounts can be used to “true up” allocations reducing the likelihood that rebalancing will need to occur
  • Mindfully selecting the correct tax lot price per share when liquidating

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