> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# /tlh

> Identify tax-loss harvesting opportunities, suggest replacement securities, and manage wash sale windows

## What is Tax-Loss Harvesting?

Tax-loss harvesting (TLH) is an investment strategy where you sell securities that have declined in value to realize a capital loss for tax purposes. These realized losses can offset capital gains elsewhere in the portfolio, reducing the client's tax bill. If losses exceed gains, up to \$3,000 per year can be deducted against ordinary income, with excess losses carrying forward to future years.

The key insight is that you do not leave the market -- after selling the losing position, you immediately buy a **replacement security** with similar (but not identical) market exposure. The portfolio's risk profile stays essentially the same, but the client saves real money on taxes. This "tax alpha" can add 1-2% annually to after-tax returns.

The critical constraint is the **wash sale rule**: you cannot buy a "substantially identical" security within 30 days before or after the sale, or the loss is disallowed for tax purposes.

## Command

```bash theme={null}
/tlh [client name or account]
```

Loads the `tax-loss-harvesting` skill to scan taxable accounts for harvestable losses, suggest replacement securities, and manage wash sale windows.

## What It Produces

* Ranked list of harvest candidates (by absolute loss, short-term first)
* Gain/loss budget and estimated tax savings
* Replacement security recommendations (similar exposure, not substantially identical)
* Wash sale calendar (30-day lookback and forward windows across all household accounts)
* Trade execution plan with estimated proceeds, losses, and replacement buys

<Warning>
  Wash sale rules apply across ALL household accounts including IRAs and Roth accounts. Violations disallow the loss AND adjust cost basis. Always coordinate across the full household.
</Warning>

## How to Customize

Edit the `tax-loss-harvesting` skill to add your firm's approved replacement security pairs, adjust minimum harvest thresholds, or include firm-specific wash sale tracking procedures.

## Related Skill

See the [Tax-Loss Harvesting skill](/en/wealth-management/skills/tax-loss-harvesting) for the full framework, gain/loss budgeting, replacement security guidance, and wash sale tracking details.