Tax Optimization Feature (Unrealized Gains)
The Tax Optimization Feature allows you to identify current gains and losses of all your existing asset tranches and their holding period.
Depending on your tax country, it is possible to realize gains as well as losses in order to optimize your tax burden within the respective year (offsetting of losses against gains).
In the US, for example, a sale of a tranche that has been held for more than 365 days falls under long-term capital gains and is taxed differently than short-term capital gains.
Our Tax Optimization Feature provides the information you need to optimize your taxes!
How to use the Tax Optimization Feature and what to be aware of?
- Navigate to Tax Optimization.
- Now update your asset tranches by clicking the Recalculate button.
The calculation shall always be based on your complete and error-free transaction history, similar to your tax report. If the calculation is blocked by errors, you can fix them with the following instructions
Always make sure that all your deposits and withdrawals are correctly linked, because without that, acquisition times and acquisition costs cannot be transferred!
- Now, the entire history of all asset tranches ever purchased is displayed and can be shown in Asset- or Integration View.
- If you want to realize gains (+values) or losses (-values), the oldest asset tranche in the corresponding portfolio is always sold first. The underlying tax logic is also referred to as FIFO (First In-First Out) and applies separately to each integration (integration segregation).
The oldest asset tranche is always at the top of the list!
Asset View in Detail
- The green and red unrealized gains are live values, so no recalculation is required as long as there was no change in the transactions.
- The shown asset balance is exclusively calculated on the basis of your imported transactions and therefore identical to your calculated balance.
- You can simulate the Tax Optimization Feature or the tax impact of a sale by creating a manual trade in the corresponding integration and then recalculating it. However, do not forget to delete this transaction afterwards!