What is the Zero Tax Strategy?
This tool helps you balance gains and losses to minimize your capital gains, whether you’re currently in a gain or loss position. It shows exactly which transactions to make to maximize the use of realized losses and achieve ‘free’ capital gains, or to realize losses and reduce your capital gains
How to access the Zero Tax Strategy tool
Click on Portfolio from the main menu on the left, then click on Strategies
In the new screen click on the Check strategies button shown in the image below
How to use the tool
By clicking on the button shown in the image above, you'll be taken to this page.
Here the fiat amount of the capital gain/loss generated for the current fiscal year will be displayed.
By clicking on Calculate, the tool will suggest optimal sales to realize capital losses and help reduce your taxes.
A potential fiscal strategy will be displayed, showing the possible tax reduction according to the suggested new capital losses, resulting in lower gains.
Users can either accept the suggestion and click on Request strategy report, or customise their strategy by clicking on the Customise strategy button.
Below this section, the list of tokens involved in the strategy will be displayed, showing the potential result obtainable by selling the indicated amount, in relation to the current token price and its acquisition cost.
Request strategy report
After clicking on the apposite button, you will receive an email with a pdf report for Tax Loss Harvesting.
This document indicates which tokens, for what amount, and from which connection, could generate a capital loss if sold.
At the top of the report a summary is available indicating the following data:
Current capital gain realized
Potential capital loss - if proceeding with the suggested token sales
Potential future capital gain - the new taxable amount resulting form the sales of the suggested tokens
The main body of the report displays all the tokens to sell to generate the indicated capital loss to offset from your gains.
Customise Strategy
In case you do not wish to accept the suggestions automatically provided by the tool, you can manually choose which tokens to sell in order to reduce your tax burden.
In order to do so, click on the Customise strategy button.
Select the tokens to include in the strategy, then click on Choose x tokens
Review the tokens included in the strategy, then click on Request strategy report
You will receive an email with a pdf report for Tax Loss Harvesting.
This document indicates which tokens, for what amount, and from which connection, could generate a capital loss if sold.