Sophisticated functionality ensures compliance with IRS wash sale rule and optimizes cash management and tax benefits for investors

intelliflo redblack Launches Wash Sales Detection Capabilities for Families and SMAs, Strengthening Compliance and Tax-Sensitive Rebalancing

Amber Bush
amber@williammills.com
706.248.6272

intelliflo redblack today announced the launch of a powerful new wash sale detection capability that allows for the linking of accounts, including separately managed accounts (SMAs) across family members to alert for potential wash sales before they occur. These capabilities are designed to help financial advisors ensure compliance with IRS wash sale rules while maintaining optimal tax management strategies and maximizing cash management benefits for their clients.

The IRS wash sale rule disallows the tax deduction of a loss on a sale of securities if the same or substantially identical security is purchased within 30 days before or after the sale. This rule prevents investors from selling securities at a loss solely for tax advantages and then repurchasing them to maintain their position.

With intelliflo redblack’s latest wash sales detection capability, advisors can now automatically screen for potential wash sales at the position or trade lot level during the rebalancing process. The technology supports a range of account types including SMAs and importantly considers investments held across households and families to flag potential wash sales that occur across multiple accounts. This ensures that tax-sensitive rebalancing and cash management are optimized across the most complex client portfolios. By identifying wash sales early, the platform helps advisors prevent compliance breaches, avoid excessive tax liabilities, and secure tax-loss harvesting opportunities, all while maintaining their clients’ intended asset allocations.

“We understand the increasing pressure financial advisors face to deliver exceptional service while navigating a complex regulatory landscape," said Jennifer Valdez, President of intelliflo Americas. “Our new wash sales detection capability streamlines the process, ensuring compliance and enhancing tax-sensitive rebalancing, giving advisors back valuable time and allowing them to scale their practices efficiently.”

“Our new wash sale detection capability is more than just a compliance tool; it’s a strategic advantage for financial advisors,” said Roel Vlemmings, Senior VP of Product and Engineering for intelliflo. “By automating a complex process, advisors can now spend less time on manual compliance checks and more time delivering personalized advice to their clients.”

The new functionality integrates seamlessly into intelliflo redblack’s industry-leading rebalancing platform, offering customizable views and notifications that highlight accounts requiring cash deposits, withdrawals, or raising cash. Advisors can also set thresholds for tax-loss harvesting at either the position or percentage level, ensuring precise and efficient portfolio management.

This advancement adds to intelliflo redblack’s suite of automated tools for tax-efficient investing. It not only enhances the advisor’s ability to deliver optimal outcomes for clients but also strengthens compliance efforts, reducing the manual workload traditionally associated with managing wash sale rules. By leveraging cutting-edge technology, advisors can focus on higher-value tasks, such as spending time with clients and growing their business.

intelliflo redblack continues to experience notable momentum and success in the marketplace. The platform received a 2024 WealthManagement Award for Rebalancing, was named WealthTech Provider of the Year by InvestmentNews and was named a finalist for the 2024 ThinkAdvisor Luminaries Awards in the Innovation in Rebalancing category.

About intelliflo

intelliflo widens access to financial advice through leading technology powering the financial advisory experience. We use open software architectures combined with unmatched industry experience to simplify a complex digital landscape to help advisors compete and grow. Our solutions support over 30,000 financial advisors worldwide, representing over three million end-investors, with over $1 trillion serviced across our platforms.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024107216/en/

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