Year-round vigilance
At Upleft, “tax day” isn’t one day in April.
Taxation is an afterthought for many investment companies since the majority of their assets are in tax-deferred accounts like IRAs. Similarly, many investment products are not built to optimize their clients’ after-tax returns. Not all investment professionals are proactive in reducing taxation to their clients. In many cases, when an advisor does talk about harvesting tax losses, it is in the last month or two of the year.
For assets held outside of retirement accounts, we work year-round to help investors keep more of what they make. We treat taxable accounts very differently than their tax-deferred counterparts in order to give our clients the best after-tax outcomes.
Here are just a few of the tax-management tools at our disposal:
Asset Location
An intelligent look at which types of investments are held in taxable accounts versus tax-advantaged accounts
Holding Period Awareness
Weighing the pros and cons of delaying an asset sale for potential long-term capital gains treatment
Tax-Aware Transactions
An eye on tax efficiency with each move in your portfolio, be it for a specific event like a distribution or something more common like quarterly rebalancing.
TAX OBSERVATION REPORTING
An annual review of client returns in order to identify opportunities to reduce future income tax burdens and minimize unnecessary costs.
Loss Harvesting
Tax loss harvesting doesn’t just take place at the end of the year. We look every trading day for opportunities to build a meaningful offset for your taxable gains.
Cost Lot Accounting
Consideration of the cost and holding period of each specific purchase of each investment, not simply the Stock Symbol or CUSIP