Unrealized Gains / Tax Optimization Feature
The Unrealized Gains 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 positive (+) as well as negative (-) gains 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 Unrealized Gains Feature provides the information you need to optimize your taxes!
How to use the Unrealized Gains Feature and what to be aware of?
- Navigate to Unrealized Gains.
- Now update your asset tranches by clicking the Recalculate button.
Important: 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 Depot 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 depot (depot segregation).
The oldest asset tranche is always at the top of the list!
Asset View in Detail
Hint 1: The green and red unrealized gains are live values, so no recalculation is required as long as there was no change in the transactions.
Hint 2: You can simulate the Unrealized Gains Feature or the tax impact of a sale by creating a manual trade in the corresponding depot and then recalculating it. However, do not forget to delete this transaction afterwards!