Review the important disclosures at the end of this page.
Tax Transition & Tax-Loss Harvesting
Helping You Manage Unrealized Gains
Our proprietary tax-aware tools help RIAs manage their clients' capital gains at the household-level or account-level on a one-time or recurring basis.
Financial Advisors seek both scale and personalization in managing their clients' unrealized gains and losses. Whether during initial onboarding, during a model transition, or throughout the year, GeoWealth's platform can analyze the potential tax impact of a transaction.
GeoWealth’s tax tools support streamlined transitions into model portfolios and Unified Managed Accounts (UMAs) and enable ongoing tax management through continuous tax-loss harvesting and tax transition.
Scale & Personalization
GeoWealth offers multiple tools for qualified RIAs seeking tax-aware technology:
Tax Transition for Individual Accounts*
Bulk Tax Transition for Multiple Accounts*
Firm-level Tax Equivalent List
Tax-loss Harvesting
Tax-loss Harvesting for UMAs that include Direct Indexing*
* Subject to asset minimums and RIA eligibility.
TEQ
Tax Transition
GeoWealth’s Tax Equivalent framework helps advisors manage the trade-off between tax efficiency and portfolio alignment to transition clients to models.
Easing the Move to Models
Advisors want to allocate client assets into models, as models provide the ability to scale and grow their businesses; however, capital gains often create a tax hurdle that slows model adoption.
At the heart of our tax tools is the concept of Tax Equivalents—a framework that allows advisors to temporarily replace a model holding with an alternative offering similar exposure.
TLH
Tax-loss Harvesting
Leverage GeoWealth’s proprietary ongoing TLH technology to potentially reduce clients' tax liability by selling holdings that have decreased in value.
Continuous Monitoring
Tax-loss Harvesting (“TLH”) has historically been a manual, time-consuming process only actioned at the end of the year. New technology has systematized the process for advisors and seeks to capitalize on down periods in the market throughout the entire trading year.
GeoWealth’s proprietary technology provides TLH capabilities for both models and Unified Managed Accounts (UMAs), on a regular, frequent basis throughout the year.
How GeoWealth Supports Your Tax Processes:
Unified Framework
A single, structured process for your entire book of business.
Account-Level Customization
From minimal tax bill to full rebalance, the advisor controls the dial.
Preview Tax Impact
Estimated capital gains are quantified and visible before execution begins.
Understanding Tax Equivalents
Tax Equivalents let advisors temporarily replace a model holding with a position with similar exposure, reducing the likelihood of triggering unnecessary capital gains.
This is how advisors manage the trade-off between tax efficiency and portfolio alignment, making it easier to move more clients into models.
For clients with legacy positions, Tax Equivalents can mitigate what might otherwise be a large tax bill.
Tax equivalents are especially valuable for legacy holdings carrying large unrealized gains. Selling those positions outright could result in a major tax bill, but substituting them with comparable positions helps manage the tax impact while preserving investment exposure.
The Tiers are the framework behind it: four levels of mapping granularity, each narrowing the definition of "similar."
During the transition process, our tax tools present a clear view of all four tiers, along with the estimated tax impact of each, so advisors can make the most informed choice on the fly. Lower tiers offer more flexibility and greater tax efficiency, while higher tiers track the model more closely.
Beyond transition, the tiers also function as a mechanism for ongoing model alignment.
Incoming contributions are allocated directly into model positions, and rebalancing trims are taken from the tax-equivalent position first.
PROCESS OVERVIEW
Personalizing to a Client's Account
Throughout the Tax Transition workflow, advisors may have the option to further customize outcomes to suit a client's needs. Start with a preset Tier, then adjust:
EVALUATE NEED
Advisor gets broad tax feedback in the Service Request and decides to intiate the Tax Transition workflow.
PERSONALIZE
Advisor may be given permission to choose to further refine the Tier-level settings to meet the specific needs of the client or account.
SELECT A TIER
Advisor then selects from one of the five pre-set Tax Equivalent tiers depending on desired level of mapping granularity.
REVIEW
Advisor reviews a summary of all trades and the related tax implications, then submits the Tax Transition workflow to GeoWealth's Trading Team.
OVERVIEW
Understanding Tax-loss Harvesting
Tax-loss harvesting has historically been a manual, time-consuming process only actioned at the end of the year, but modern TAMP technology now systematizes this throughout the trading year
Managing Wash Sales
Wash sale rules create complexity that requires sophisticated technology to navigate effectively. GeoWealth enables automated reinvestment back to model positions after wash sale periods, which can maintain portfolio integrity while maximizing tax alpha.
Unified Managed Accounts
GeoWealth's tax-loss harvesting capabilities offer advanced household-level coordination across qualified and non-qualified accounts. This enables advisors to holistically manage a client's potential tax bill across multiple accounts and portfolios.
Firm-level Controls
Our modern TAMP technology enables both firm-level standardization and client-level personalization of transition strategies. Customizable firm-level replacement lists reduce advisor liability compared to platforms requiring manual security selection.
SEE IT IN ACTION
Schedule Your Demo
Are you burdened by the manual, time-consuming process of tax-loss harvesting?
Are you struggling to transition clients with appreciated assets into model portfolios?
Fill out this form to be connected with our team to discuss access to the GeoWealth platform, including these tax overlay tools.
DISCLOSURES:
These tools are subject to asset minimums, RIA eligibility, and other requirements.
The information contained herein does not constitute investment advice or a solicitation. This website is for dissemination of general information only. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results.
Our tax capabilities are designed to streamline the tax management process for advisors, reducing the time and resources required to manage these tasks independently. While these tools provide meaningful efficiencies, they are not intended to serve as a fully comprehensive tax solution. Key limitations include the absence of holistic client tax data, potential data quality issues or inaccuracies from third-party sources, reliance on advisor-defined assumptions for tax-loss harvesting and tax-equivalent replacements, the need for ongoing oversight and maintenance, and client-specific constraints such as maximum acceptable gains following a wash-sale period.
Advisory Use Only: The tax transition tools provided are intended to assist advisors in offering their own tax-efficient advice to clients. These tools do not constitute tax advice from GeoWealth.
Cost Basis Data: The cost basis data displayed is based on information received from each client’s qualified custodian. We do not independently verify the accuracy of this data.
IRC Section 1091 Compliance: We make no determination as to whether any security used as a substitute (“Tax Equivalent”) for another security would be considered “substantially identical” under IRC Section 1091 or Publication 550.
IRC Section 1091 states: “In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale or disposition and ending 30 days after such date, the taxpayer has acquired (by purchase or by an exchange on which the entire amount of gain or loss was recognized by law), or has entered into a contract or option so to acquire, substantially identical stock or securities, then no deduction shall be allowed under section 165.”
Estimates: The value of securities continuously change. Any gain or loss data presented, and any other data based on the security prices are estimates and will change at the time trades are placed.
Drift and Suitability: The use of tax transition tools will cause your client’s portfolio to either drift from their designed model’s targeted picks or hold different positions altogether. You are solely responsible for determining whether tax transition tools are suitable for your clients and whether the securities held meet your client’s intended investment objective.
Client Reviews and Ongoing Client Maintenance: Advisors are required to regularly review the gains and losses generated in client accounts and adjust the client's tax settings as necessary.
Account Enrollment: Households and/or accounts are not automatically enrolled in tax; they must be manually opted in through the Tax Center on the GeoWealth platform. If you enroll a household, you must ensure it is in good order with the correct accounts linked.
Tax Eligibility for Models and Securities: Not all models and/or securities are enabled for tax tools. Please see the list of eligible models in the model center and securities in your Firm TLH Settings tab in the Tax center.
Turn Off Dividend Reinvestment (DRIP) at the Custodian:Dividend Reinvestment can result in wash sales. If we harvest a loss on a position that has dividend reinvestment on and this results in a buy during the wash sale period, it will create a wash sale.
Please note that tax tools are not applicable to all models and therefore may not apply to all assets opted in.
GeoWealth’s tax tools and estimates all assume a High Cost (HICO) tax lot disposal method. Therefore, while GeoWealth cannot give tax advice and is not aware of a client’s tax and financial situation, we do require that all clients enrolled for tax tools have their tax lot disposal method set to HICO at the custodian.
Before submitting the request for tax tools, the advisor must verify that they will request GeoWealth to update the tax lot disposal method for all relevant client accounts to High Cost (HICO). It is the responsibility of the advisor to ensure accounts are set to HICO. GeoWealth does not actively monitor accounts for this setting and is not responsible for ensuring accounts are set to HICO.
While GeoWealth cannot give tax advice and is not aware of a client’s tax and financial situation, we do require that all clients turn off dividend reinvestment at the custodian for each tax equivalent. If you require assistance, please reach out to your Strategic Consultant.
Please have clients seek tax advice from a licensed tax professional.
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