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 you can use to report realized gains and losses in your Axos Invest taxable account(s). This form was prepared for all clients with a focus on allowing you to realize more investment losses, and thus, tax deductions.
Generally, we're not a fan of more documents; however, we'll make an exception for our Form 8949. Axos Invest's WiseHarvesting software is able to designate specific tax lots to get more realized losses and accordingly, tax deductions, from the sales of securities in your taxable Axos Invest account. We could have taken the easy way out and used 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, but we believe our method could allow you to realize more value in the form of tax deductions.1
Even if you didn't take advantage of WiseHarvesting in 2018, you should still consult our 8949 to see the difference in reported investment gains and losses as compared to Apex's 1099-B. Better yet, you should 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 Securities 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.