intelliflo boosts platform with new wash sale rule feature

intelliflo has introduced new wash sale detection capabilities to its redblack platform, aimed at helping financial advisors manage compliance with IRS rules while optimizing tax-sensitive rebalancing strategies.

Rolled out on Thursday, the new functionality is designed to spot potential wash sales before they occur, improving efficiency and reducing manual oversight.

As a quick refresher, the IRS wash sale rule prevents investors from claiming tax deductions on securities sold at a loss if a nearly identical asset is repurchased within a 30-day window. Altruist, a challenger fintech platform focused on independent RIAs, also had wash sales in mind when it enhanced its own platform with a new tax management suite in June.

To help investors avoid that tripwire in their tax planning, intelliflo’s redblack solution now automates detection at both the trade lot and position levels. It links accounts across households, including separately managed accounts, flagging any potential wash sales involving multiple family members.

“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,” Jennifer Valdez, president of intelliflo Americas, said in a statement.

With the new tool, financial advisors can optimize tax-loss harvesting strategies while ensuring portfolio alignment and compliance. The system also provides alerts on accounts needing cash deposits or withdrawals, and offers customizable thresholds for tax-loss harvesting at different levels, helping to further streamline portfolio management.

“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 vice president of product and engineering at 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.”

This update extends intelliflo redblack’s suite of automation tools aimed at tax-efficient investing, helping advisors reduce their administrative workload while focusing on client engagement. It also builds on another update in July, when intelliflo bolstered its redblack offering with a new institutional-grade compliance rules engine.

The fintech firm, which is owned by and operates independently from Invesco, currently supports over 30,000 financial advisors, servicing $1 trillion in assets globally throughout its platform.