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Duration: 4:06


Contributor: Interactive Brokers

Level: Beginner

This lesson will explore the IBKR Tax Optimizer tool which lets you manage your stock, option, bond, warrant, single-stock future and mutual fund gains and losses for tax purposes.

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Study Notes:

The Tax Optimizer is a tool available within Client Portal that lets users manage gains and losses for stock, bond, warrant, single-stock future and mutual fund transactions.

Tax optimizer lets users select one of several tax lot-matching methods.

The default tax lot-matching method for the account can be changed. It can be changed for the current or prior trading day.

The tax lot-matching method may be changed for a specific symbol for the current or prior trading day.

Users may change the lot-matching method on the fly to immediately see the effect on users gains and losses by running real-time scenarios.

And finally, users may manually match specific sales to open tax lots for the current or prior trading day.

Within Tax Optimizer users can view a year-to-date summary screen displaying short-term and long-term profit and loss, unrealized profit and loss and total profit and loss by symbol. From this year-to-date summary screen users may change the account default lot-matching method and today’s lot-matching method.

Access Tax Optimizer

Access Client Portal and open the main menu.

Locate and select reports and by clicking on Tax, the Tax Reports window will display.

Locate Tax Optimizer in the upper right. Here you can select a date.

Click the Launch Tax Optimizer button to save and then run the Java-based software.

Account Default Match Method

In the upper left corner users with multiple account structures may select an account.

Beneath, click the dropdown menu to reveal and select the method you want to set as the default method for the account.

Click the Save button in the upper right of the screen.

Changing the Match Method for Current or Prior Trading Day

The default match method can be overridden for the current or prior trading day in the Tax Optimizer.

The account default will resume the following day.

Reveal the dropdown menu next to Today’s Match Method and make the desired selection for today or the prior trading day, then click Save.

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Supporting documentation for any claims and statistical information will be provided upon request.

Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.

Disclosure: Tax-Related Circular 230 Notice

The information in this presentation is provided for informational purposes only, and does not constitute tax advice and cannot be used by the recipient or any other taxpayer to avoid penalties under any federal, state, local or other tax statutes or regulations, or to resolve any tax issue.

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