Tax Loss Harvesting

Tax-Loss Harvesting

MCP Tool Map

• Taxable-scope validation and candidate scan: portfolio-analytics.validate_account_taxonomy, portfolio-analytics.find_tax_loss_harvesting_candidates
• Realized activity context: ghostfolio.portfolio(operation="performance", range="1y")
• Tax impact context: use household-tax.assess_exact_support only if the requested household-tax effect is inside the supported exact scope

Workflow

Step 1: Scope Taxable Accounts

• Validate account tags via portfolio-analytics.validate_account_taxonomy
• Use taxable scope only:
  • scope_entity=personal (or trust when applicable)
  • scope_wrapper=taxable
  • scope_account_types=["brokerage"] (must be a list, not a comma-separated string)

Step 2: Identify Candidates

• Run portfolio-analytics.find_tax_loss_harvesting_candidates
• Review:
  • Absolute unrealized loss
  • Loss percentage
  • Estimated tax savings

Step 3: Gain/Loss Budget

• Pull realized gains/loss context from tax records and budget data
• Prioritize losses where marginal tax benefit is highest
• Do not call deleted household-tax scenario tools. If a household-tax overlay is needed, assess exact support first and stop if unsupported.

Step 4: Replacement Selection

• Use suggested replacements while avoiding substantially identical securities
• Prefer liquid alternatives with similar exposure and low tracking error

Step 5: Wash Sale Controls

• Enforce 30-day wash sale window across all household accounts
• Check DRIP/auto-invest settings that may trigger repurchases

Step 6: Output

• Candidate list with estimated savings
• Replacement mapping and execution order
• Wash sale window calendar