Launching the Tax Optimizer
You can change your trades' cost basis directly within TWS using the built-in Tax Optimizer tool. You can try up to seven different automated matching methods across all lots, methods like Last In, First Out or Maximize Long Term Gain. You can apply a method to a single closing trade, or manually match a specific open lot to a specific closing trade. See potential profit and loss using your selected method(s), broken out by long-term and short-term gain or loss.
To Open Tax Optimizer
-
Right-click an instrument in your Portfolio and select Change Tax Lots.
-
A pop-up message will appear asking if you would like to open the Tax Loss Harvesting tool. Select No.
-
The Tax Optimizer screen will appear showing your closing trades on the left hand side, and your open lots on the right.
-
To modify the matching method for a trade, click the Method drop-down menu across the top of the window and select a different method.
To modify the default matching method that is automatically applied across all available lots, navigate to the Client Portal and select Reporting > Tax Documents.