Envestnet, is rolling out a series of technology enhancements, including innovative features in the Envestnet | Tamarac platform that enable independent registered investment advisers (RIAs) to efficiently manage and track annual capital gains taxes in clients’ taxable accounts.
“Our new capital gains management and monitoring features give advisors and their clients the insights they need to make tax-aware—and tax-smart—investing decisions,” said Andina Anderson, Executive Managing Director of Envestnet | Tamarac. “Tamarac, and the broader Envestnet platform, are making it easier for advisors to expand the essential advice they deliver by uncovering tax opportunities for clients.”
Tamarac users can compare incurred and anticipated capital gains to budgeted capital gains and set desired annual capital gains amounts when rebalancing accounts or groups. RIAs can also utilize these tools to proactively track the capital gains an account or group has incurred year-to-date and receive rebalance warnings whenever trades incur capital gains that exceed the annual budgeted amounts.
These capabilities are made possible by Tamarac’s newly developed Annual Capital Gains Tax Budget setting, which also enables advisors to track long- and short-term gains together or individually. The new setting harnesses the existing ST Capital Gains Tax Rate and LT Capital Gains Tax Rate fields to estimate year-to-date taxes incurred by short- and long-term gains, and by current rebalances. The existing Max Gain Amount setting will continue to limit the amount of gains that a rebalance can incur.
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In addition, advisors can proactively make trades that optimize for capital gains in Tamarac using the following new tools:
- Saved Search Filter: Advisors can create a saved search with their Annual Capital Gains Budget to audit for the percentage of the capital gains budget which has been met.
- Rebalancing Workflow Page Columns: New columns—Tax Budget Used, YTD Capital Gains Taxes, and Annual Capital Gains Tax Budget—can be added to the Rebalance, Trade List, and Rebalance Review pages in Tamarac to help advisors proactively plan tax-appropriate trades for each client.
- Bulk Report & Upload Columns: The Account Information bulk report in Tamarac Reporting® now includes new Annual Capital Gains Tax Budget and Annual Capital Gains Tax Budget Value Type columns, which can be uploaded to add or change capital gains budgets for many accounts or groups simultaneously.
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