As an investor, you will inevitably realize investment gains and losses along the way as your portfolio(s) is rebalanced and securities are sold. The IRS (herein referred to as "Tax Man") requires that these investment gains and losses are reported each year as you file your taxes.
To help with your taxes this year, we prepared a Form 8949 as an alternate method to report realized gains and losses in your Axos Invest Personal Investment Account(s).
Generally, we're not a fan of more documents; however, we'll make an exception for our Form 8949. Axos Invest's WiseHarvesting software was designed to designate specific tax lots in an attempt to achieve realized losses and accordingly, tax deductions, from the sales of securities in your taxable Axos Invest account. You may use the Form 1099-B prepared by Apex Clearing, but its software uses the "first-in, first-out," or FIFO, the method of cost basis reporting. Both methods are accepted by the Tax Man.
Even if you didn't take advantage of WiseHarvesting in 2019, you should still consult our 8949 to see the difference in reported investment gains and losses as compared to Apex's 1099-B. Prior to filing your taxes, please make sure you consult with your legal, tax, and/or accounting professionals before making any decisions. We know this is fun stuff, so please let us know if you have any questions.
Happy Tax Season!
– The Axos Invest Team
1 Axos Invest Inc. and Axos Invest LLC do not provide legal, tax or accounting advice. This material and all tax-related documents provided is for informational purposes only. Please consult with your legal, tax and/or accounting professional before making any decisions.
You are solely responsible for determining whether to use WiseHarvesting and whether you would benefit from doing so. You retain that responsibility notwithstanding any general guidance that WiseHarvesting may provide based on a hypothetical tax rate. The benefits of WiseHarvesting if any, in reducing an investor’s tax liability will depend on the investor’s entire tax and investment circumstances, including but not limited to: their income, state of residence, the purchases and dispositions of assets in the investor’s (and their spouses) accounts outside of Axos Invest, type of investment accounts held, and applicable investment holding periods. You can opt-in or out of WiseHarvesting at any time through your client portal.
You and your tax advisor are responsible for how transactions conducted in your account are reported to the IRS, or any other tax authority, on your personal tax return. Axos Invest assumes no responsibility for the tax consequences to any client of any transaction associated with WiseHarvesting.