Reconcile 1.0 is finally here!
Get advanced alerts, real-time tax estimates, and an aggregated portfolio view
Hey everyone, good morning! Popping in to share some great news about your portfolio and 2021 tax obligation 🙌🏽
We’re releasing Reconcile 1.0 to help all of you understand your current capital gains tax liability and harvest your losses before the end of the year!
In case you missed it or are not familiar with tax-loss harvesting, check out our primer here.
Also, check out this Bloomberg article that we were mentioned in!
So what’s so special about Reconcile 1.0?
Here’s the key list of upgrades we’ve made in the last two months:
Expanded brokerage coverage to include Robinhood, Fidelity, and TD Ameritrade so you can link more of your accounts.
Improved transaction matching across Plaid, your monthly statements, and manual entries to improve your tax calculation accuracy.
Included your derivatives (options) trades into the tax and wash sale calculations for better alerts and reporting.
Built a real-time tax simulator for your holdings so you can better estimate the tax impact if you were to sell at any given moment.
Added advanced alerts for wash sales, holdings close to realizing lower tax rates, and tax-loss harvesting opportunities.
Want to see the app in action? I recorded myself using Reconcile having linked my Robinhood account!
How will Reconcile work? How do I use it?
Onboarding is approximately a five-minute journey that will have you:
Create an account
Answer a couple questions about your tax filing status
Link your brokerage account
Upload all of your brokerage’s monthly statements from the time you first opened the account. We need this information since Plaid unfortunately only provides real-time transaction data moving forward, not historical
Subscribe to your 7-day free trial
On the dashboard, you’ll be able to see all of your equities and derivatives transactions and the net tax liability you’ll owe. If you see any missing information, you can manually add in the specific transaction or re-upload a PDF in case we missed something.
Simulating tax impacts of selling a holding
In your holdings, you’ll be able to see your current equities and derivatives, and most importantly, an estimated tax impact if you were to sell that lot.
So before you sell your holdings again, you should look at the tax impact of such a decision. This estimate will help you avoid realizing lots of gains and boosting your tax liability unnecessarily.
Looking at your trading alerts
In your alerts, you’ll see three unique pages for your wash sales, holding status, and tax-loss harvesting opportunities.
The wash sale page will show you transactions that are at risk of a wash sale, in violation, or that are no longer at risk. So you can now avoid the infamous wash sale and keep your tax liability low!
The holding status page will show you all tax lots that are within 30 days of becoming long term and your future tax rate. Long term holdings are taxed at lower rates, so this alert can help you avoid selling too early and paying more in tax!
The tax-loss harvesting page will show you all tax lots that can be sold at a loss to lower your tax liability. There’s a tax savings calculation that estimates how much money you’ll save in taxes if you were to sell this entire tax lot. In some instances, your tax saving will be $0 if you have no taxable gains already.
And what’s Reconcile 2.0 look like?
We still have lots to build for you - especially when it comes to simplifying your user experience and integrating with even more brokerages like Charles Schwab, Coinbase, OpenSea, etc. Here’s what’s on our roadmap:
Expand tax calculations into other investment classes (e.g. crypto, angel investing, real estate, startup stock options, etc.)
Directly integrating with brokerages to avoid you having to manually upload lots of PDFs
Building a marketplace of CPAs and CFPs to partner you with for white-glove tax support - including year-round tax filing, planning, and consulting services
Automatically transferring money into tax-havens like Donor Advised Funds or Charitable Remainder Trusts
Our mission is to simply help the average American pay less taxes. We strongly believe everything we’ve done so far and will continue to do will fundamentally shift the tax inequality in America. It’s time the 99% can take advantage of tax laws and loopholes as well as the 1% can!
Co-founder & CEO