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The Gain and Loss Tax Management Tool

What is it and where can I find it? To find the Gain & Loss Tax Management Tool, click on the Accounts tab, hover over Tax Center, click Gain & Loss Tax Management, and then the big, green Launch Tool button.

Here you'll find information on:

  1. Gains & Losses - View your closed and open positions, your adjusted cost basis, and the gains & losses for each taxable account you have.
  2. A "Lot Closing instructions" section - Here, you can change your default setting, and if it's within settlement, adjust recent sales.

Your positions within the Gain & Loss Tax Management Tool reflect the close of the previous market day.

Closed Positions

Here's what you'll find on the Closed Positions tab:

  1. Lot breakdown for each position - Click on the plus icon to see the lot breakdown for each closed position.
  2. Adjusted cost basis - The original cost of your investment (typically, the purchase price plus commission) adjusted for to corporate actions, dividend reinvestments, and wash sales.
  3. Wash Sales deferral - If you buy and sell the same security within a 30-day period, you have to defer any losses (this is an IRS rule).
  4. Realized short term gains & losses - When you sell, you "realize" a gain or loss. Short term is lots you held for one year or less, and is the amount you receive from the sale, minus your adjusted cost basis.
  5. Realized long term gains & losses - Same as above, but with one difference: long term is (you guessed it) more than a year.
  6. Cost Basis Reported designation - New cost basis rules went into effect in 2011. This is how you can tell if those rules apply to lots you own.

We'll only report cost basis to the IRS for transactions that are officially covered, but to help you out, we'll provide cost basis for your sell transactions on your 1099 tax form for each tax year. It's up to you to report this information to the IRS when you file your taxes. We strongly advise that you consult with a tax advisor to validate all cost basis information provided.

Open Positions

The Open Positions tab shows you securities you currently own:

  1. Lot breakdown for each position - This shows details of each lot.
  2. Adjusted cost basis - The original cost of your investment (typically, the purchase price plus commission) adjusted for to corporate actions, dividend reinvestments, and wash sales.
  3. Wash sales adjustment - If you buy and sell the same security within a 30-day period, you have to defer any losses (this is an IRS rule). This column will display any deferred losses.
  4. Unrealized short term gains & losses - The market value for lots held for more than one year minus adjusted cost basis.
  5. Unrealized long term gains & losses - The proceeds for lots you held more than one year, minus adjusted cost basis.
  6. Day(s) until long-term - If the lot is considered short-term, you can see how many days until it is considered long term. Long term gains and losses are taxed differently (talk to a tax professional for details).

Key Terms Mentioned

Opens the scrolled simulated dialogImportant Disclosures