The broker-dealer firm Interactive Brokers has added a new professional tax planning toolkit within its PortfolioAnalyst platform, dubbed Tax Planner.
The new capabilities complement existing tax-lot matching and tax loss harvesting features, according to the announcement, giving investors greater control over the tax implications of their investment activity.
With Tax Planner, users create personal tax profiles from inputs such as income from other sources, deductions, withholdings and tax rates. The tool uses the tax profile and activity data from investors’ Interactive Brokers accounts to help estimate tax bills and assist with tax planning throughout the year.
“Our mission is to equip clients with tools that make managing investment performance, including tax outcomes, more efficient while maintaining the low costs and global market access that sets Interactive Brokers apart,” said Milan Galik, Interactive Brokers CEO, in a statement.
Galik added that the new Tax Planner gives investors a higher degree of oversight over the tax implications of their trades.
By using the expanded tax capabilities, clients will be able to identify tax loss harvesting opportunities across the portfolio and view projected allowed and disallowed losses under wash-sale rules. They can also research and purchase replacement securities using proceeds from closed positions.
Likewise, users can preview potential short- or long-term gains or losses before submitting orders and select specific lots to close. Other capabilities include the ability to review and adjust tax-lot matching after a trade and to optimize realized short- and long-term gains.
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