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Get smart about managing your Tax Liability

Reducing tax liabilities_shutterstock_94126492

The Sensex lost close to 8% in the last quarter of 2016. While passive investors moaned about their falling portfolio value, hands-on and active investors booked losses as part of their tax management strategy.

But it’s not as easy as it sounds.  Investors with diversified portfolios and multiple wealth advisors receive monthly or quarterly reports from individual funds and advisors. They then rely on their accountant to:

  1. Compile all investment transactions
  2. Reconcile holdings statements
  3. Segregate holdings into short term and long term
  4. Compute balance number of days to long term
  5. Update the current market rate and calculate unrealized gain/loss
  6. Select stocks with short term unrealized loss
  7. Sell stocks of choice to book short term capital loss

The biggest drawback here is the high probability of human error while calculating short term and long term periods, coupled with the herculean task of creating a lot-wise report of all stocks held under multiple entities, trading accounts and advisors. Considering the time and effort required, most accountants do not track capital gains on a daily basis and you may end up missing out on tax loss harvesting opportunities.

Wouldn’t you rather depend on a smart software platform that helps you accurately consolidate all your investment data and track updated lot-wise reports on short term and long term gains?

With your investment data consolidated on the Asset Vantage platform, you are back in the driver’s seat. You can identify every lot under every stock that can be sold with a short term loss to offset short term gains. Asset Vantage  also computes capital gains with indexation for all relevant asset classes and supports filing of tax returns based on accurate application of indexation gains. Optimizing tax efficiencies in your stock trading account is critical to your overall portfolio performance.

Now tax management is reduced to just three steps:

  1. Run a Gains/Loss report for any entity
  2. Select lot-wise stocks or funds to sell
  3. Sell and book losses to reduce your tax liability

No more manual entry, calculation errors or delays in receiving reports. With anytime, anywhere access to your private Asset Vantage server, derive insights and make better-informed decisions to grow your family wealth and reduce tax liabilities.


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