Tax loss harvesting vs Swell’s tax wizardry

Hannah Glenn
October 12, 2018
3 min read
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What is tax loss harvesting?

Tax loss harvesting is selling a holding that has experienced a loss. By recognizing, or "harvesting" a loss, investors are able to balance taxes on both gains and income. The sold holding is then replaced by a comparable one, maintaining optimal allocation and returns.

How does Swell optimize investors’ taxes?

We use something we like to call Intelligent Tax Lot Ordering. Essentially, whenever we made a trade for you, we do it in the most tax efficient way possible. We maximize your losses and minimize gains by selling the shares you paid the most for (and keeping the lowest purchase price shares).

Why is this important?

When you indicate to us that you’d like to sell off shares in your portfolio, we initiate the sale through our broker. Without any instructions given to them, they’ll sell off the most recently purchased shares, regardless of the prices paid or tax implications. We are looking out for you and your year-end tax bill. We’ve got you covered.

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