Wealth manager tax coordination
Capital Gains and Tax-Loss Harvesting CPA Coordination
Coordinate realized gains, losses, carryovers, wash sale records, and tax projections before year-end trading decisions become filing issues.
A CPA can help quantify tax effects from realized gains and losses, review reporting records, and project tax liabilities, but the advisor must make all investment and tax-loss harvesting recommendations.
Best fit
Clients with large realized gains, concentrated positions, loss harvesting questions, capital loss carryovers, alternative investments, or major liquidity needs.
What we help clarify
Advisor and client questions this page addresses
- How much capital gain has already been realized for the year?
- Does the client have capital loss carryovers from prior returns?
- Could wash sale reporting affect the tax treatment shown on broker statements?
- Will gains trigger estimated tax needs, net investment income tax, state tax, or phaseouts?
Gain and loss tax projection
Estimate taxable capital gains, capital loss use, net investment income tax exposure, and estimated tax needs.
Reporting checklist
Identify the Forms 1099-B, basis reports, K-1s, and state details needed for return preparation.
Carryover review
Review prior-year capital loss carryovers so advisors and clients understand what may be available for tax reporting.
Tax records
Information that usually matters before a filing position is reviewed
- Prior-year Schedule D and Form 8949, including capital loss carryovers.
- Year-to-date realized gain and loss reports from each custodian.
- Broker Forms 1099-B, cost basis reports, and wash sale adjustments when available.
- K-1s or private fund estimates with capital gain, ordinary income, and state source details.
- State residency details and expected estimated payments or withholding.
CPA coordination process
How the review typically works
- Gather prior-year carryovers and year-to-date realized gain/loss reports.
- Prepare a tax projection using realized activity and known ordinary income.
- Flag records needed for Form 8949, Schedule D, wash sales, and state reporting.
- Coordinate tax projection updates after the advisor or client implements portfolio decisions.
Frequently asked questions
Can Averkamp recommend which securities to sell?
No. Averkamp does not recommend securities or portfolio transactions. We can review tax records and projections after the advisor or client identifies potential transactions.
Why does wash sale reporting matter?
Wash sale adjustments can defer losses and change basis reporting. Broker statements may not capture every cross-account fact, so documentation should be reviewed before filing.
Can capital losses offset ordinary income?
Capital losses first offset capital gains. If losses exceed gains, individuals may generally deduct a limited amount against ordinary income, with excess losses carried forward under IRS rules.
Authoritative tax references
IRS resources commonly used in this review
These IRS resources are starting points for the tax rules and forms involved. A client-specific filing position still depends on the client records and full facts.
Related advisor resources