Intelliflo Redblack Adds Wash Sale Alert Tool

By Melanie Waddell

News October 25, 2024 at 11:05 AM

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Intelliflo redblack has rolled out a new wash sale detection capability that allows for the linking of accounts, including separately managed accounts, across family members to alert for potential wash sales before they occur.

"These capabilities are designed to help financial advisors ensure compliance with IRS wash sale rules while maintaining optimal tax management strategies and maximizing cash management benefits for their clients," the firm said in a statement.

The IRS wash sale rule prohibits the tax deduction of a loss on a sale of securities if the same or substantially identical security is purchased within 30 days before or after the sale.

"This rule prevents investors from selling securities at a loss solely for tax advantages and then repurchasing them to maintain their position," intelliflo said. "Advisors can now automatically screen for potential wash sales at the position or trade lot level during the rebalancing process."

The new functionality "integrates seamlessly into intelliflo redblack's industry-leading rebalancing platform, offering customizable views and notifications that highlight accounts requiring cash deposits, withdrawals or raising cash," the firm said.

Advisors can also set thresholds for tax-loss harvesting at either the position or percentage level, according to the firm.

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