TD Ameritrade

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

Now introducing commission-free online trading.

Applies to US exchange listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades. A $6.95 commission applies to trades of over-the-counter (OTC) stocks which includes stocks not listed on a U.S. exchange.
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Tax-loss Harvesting

Understanding tax-loss harvesting

 

Take advantage of dips in the market by using tax-loss harvesting investing strategy. This complimentary service for Essential* and Selective Portfolios will analyze your portfolio daily, searching for opportunities to initiate tax-loss harvesting. When such an opportunity arises, TD Ameritrade Investment Management will sell the position for you.

Essential Portfolios* and Selective Portfolios are offered through TD Ameritrade Investment Management, LLC ("TDAIM"). The tax-loss harvesting feature is currently only available with the TDAIM ETF-based portfolios in taxable TD Ameritrade Investing Accounts.

Potential benefits of tax-loss harvesting

  • Offset taxes on capital gains and also up to $3,000, per year, on taxable income
  • Checking daily for opportunities, while keeping your money in the market
  • An automated service, so all you have to do is turn it on 

How it works

Every trading day, your account is reviewed for any potential tax savings and is processed for you automatically. 

TD Ameritrade Investment Management, LLC ("TDAIM") and its affiliates do not provide tax advice. We suggest you consult with a tax-planning professional with regard to your personal circumstances as to whether the TDAIM tax-loss harvesting feature is appropriate for you. This feature generally would be more beneficial to investors in higher tax brackets and high-tax states.

See how tax-loss harvesting works in your portfolio

Tax-loss harvesting automatically reviews your portfolio to potentially lower the amount of taxes you owe.

Learn more about tax-loss harvesting

White Paper: Tax-loss Harvesting

New Tax Time Strategy: Tax-loss Harvesting

Get started today

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

Now introducing commission-free online trading.

Applies to US exchange listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades. A $6.95 commission applies to trades of over-the-counter (OTC) stocks which includes stocks not listed on a U.S. exchange.
Learn more

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Before investing carefully consider the underlying funds’ objectives, risks, charges, and expenses. For a prospectus containing this and other important information about each fund, contact us at 888-310-7921. Please read the prospectus carefully before investing.

All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing. Asset allocation and diversification do not eliminate the risk of experiencing investment losses.

*Essential Portfolios is closed to new investors as of March 12, 2021.

TDAIM and its affiliates do not provide tax advice. We suggest you consult with a tax-planning professional with regard to your personal circumstances as to whether the TDAIM tax-loss harvesting feature is appropriate for you. This feature generally would be more beneficial to investors in higher tax brackets and high-tax states.

The tax-loss harvesting ("TLH") feature is currently only available with the TDAIM ETF-based portfolios in taxable TD Ameritrade Investing Accounts. Tax-loss harvesting is not appropriate for all investors. Investing in securities involves risk of loss that the client should be prepared to bear. TDAIM does not represent or guarantee that the objectives of the tax-loss harvesting feature will be met. The performance of the replacement securities purchased through the TDAIM tax-loss harvesting feature may be better or worse than the performance of the securities that are sold for tax-loss harvesting purposes. TDAIM only reviews each account that is managed by it individually to help ensure that your account does not violate the “wash sale” rule. When you enroll in the tax-loss harvesting feature, the enrollment is on an account basis and does not apply to other TDAIM portfolios you may have. Each eligible TDAIM portfolio must be enrolled separately in the TLH feature. Accordingly, you are responsible for monitoring your brokerage accounts and your spouse’s brokerage accounts at TD Ameritrade or elsewhere to ensure that transactions in the same security or a substantially similar security do not create a wash sale. The wash sale rule postpones losses on a sale, if replacement shares are bought around the same time.

Prior to enrolling in the tax-loss harvesting feature, please read TD Ameritrade Investment Management’s whitepaper and see the TD Ameritrade Investment Management Disclosure Brochure (Form ADV Part 2A)

Discretionary advisory services are provided for a fee by TD Ameritrade Investment Management, LLC (“TDAIM”), a registered investment advisor and subsidiary of The Charles Schwab Corporation. For more information, including investment risks, please see the Disclosure Brochure (ADV Part 2A).

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC, and a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. ©2021 Charles Schwab & Co. Inc. All rights reserved.