How to Model Tax-Loss Harvesting Using Capital Losses Realized Annually (US)

Available November 19, 2026 | United States

Overview

Voyant now allows advisers to model tax-loss harvesting strategies within taxable Investment accounts using the new Capital Losses Realized Annually field.

With this new feature, advisers can model annual capital losses as a percentage of an investment account's value without having to enter individual investment transactions.

This can be particularly useful when comparing investment strategies and evaluating how tax-loss harvesting may affect a client's projected taxes, cash flow, and long-term financial position.

When Would You Use This Feature?

Tax-loss harvesting can be useful for clients with taxable investment portfolios, particularly those with significant capital gains or investments that have declined in value. Some investment portfolios are also specifically designed to take advantage of tax-loss harvesting opportunities, using strategies that systematically identify and realize investment losses to help improve tax efficiency.

Note: Actual tax savings depend on the client's circumstances, applicable tax rates, and other realized gains and losses

Note: This option is only available when an account is owned by a person in the plan. This will not be visible when the owner is an entity e.g. a Trust or Corporation. 

How to Enter Capital Losses Realized Annually

The new field is available for Investment accounts only within Savings & Investments in the US version of Voyant.

1. Open the client's plan and navigate to Savings & Investments.
2. Select an existing Investment account or create a new one.
3. Open the account's Growth tab.
4. Locate the new Capital Losses Realized Annually field.
5. Enter the annual percentage of the account balance that you wish to model as realized capital losses.
6. Save your changes to apply the assumption to the plan by clicking DONE. 

For example, if an Investment account has a balance of $1,000,000 and you enter 2%, Voyant will calculate $20,000 in realized capital losses for that year, subject to the account's available cost basis.

The percentage-based assumption allows the strategy to be projected over multiple years as the account balance changes.

Reviewing Capital Losses in Year View

Advisers can review the assumptions applied to the account and their impact on the plan using Year View.

Investments Tab

1. Open Year View.
2. Select the Investments tab.
3. Locate the relevant Investment account and click on it to open the details.
4. Review the Capital Losses Realized Annually line, which appears above Product Fee.

Taxes Tab

Use the Taxes tab in Year View to review how the modeled capital losses affect the client's projected tax position.

Depending on the client's circumstances, harvested losses may reduce taxable capital gains, reduce eligible ordinary income, or be carried forward into future tax years.

How Does Voyant Calculate and Apply Capital Losses?

Once an annual capital loss percentage is entered, Voyant calculates the losses and incorporates them into the plan's tax calculations.

1. Offset Realized Capital Gains

Realized capital losses are first applied against available realized capital gains.

There is no annual dollar limit on the amount of capital gains that can be offset by eligible capital losses.

For example, if a client realizes $10,000 in capital gains and $15,000 in capital losses, the losses can offset the entire $10,000 gain.

2. Reduce Ordinary Taxable Income

If capital losses exceed capital gains, the remaining losses may be used to reduce ordinary taxable income, subject to annual IRS limits.

• Up to $3,000 annually for most filing statuses, including Single and Married Filing Jointly.
• Up to $1,500 annually for Married Filing Separately.

Continuing the example above, after offsetting $10,000 in capital gains, the client would have $5,000 in remaining losses.

Assuming the client is Married Filing Jointly and has sufficient taxable income, $3,000 could be applied against ordinary income.

3. Carry Forward Unused Capital Losses

Any remaining capital losses are carried forward for use in future tax years.

This allows Voyant to account for the potential tax benefits of realized losses beyond the year in which they occur.

Understanding the Impact on Cost Basis

An important consideration when modelling tax-loss harvesting is its effect on the investment account's cost basis.

When capital losses are realized, Voyant reduces the account's cost basis by the amount of the harvested losses.

For example:

The account's projected market value is not directly reduced by the harvested losses. However, the reduction in cost basis may result in larger taxable capital gains when investments are sold in future years.

Note: Voyant will prevent the account's cost basis from falling below zero.