What is the tax loss harvesting simulator?

The tax loss harvesting simulator is a tool for estimating potential tax savings on positions held in your etoro account.

The simulator is currently designed for tax residents of Denmark. It uses the ‘first in, first out’ (FIFO) accounting method when calculating the cost basis of a position, which is required by the Skattestyrelsen (Danish Tax Agency).

How do I access the simulator?

1. Go to Settings.
2. Select Account.
3. Scroll down to Documents and select View next to Tax Harvesting.

Why use the simulator?

The tax loss harvesting simulator helps you identify potential opportunities to reduce your tax liability by selling investments at a loss. This can support more informed end-of-year or ongoing portfolio decisions.

What exactly does the simulator tell me?

The tax loss harvesting simulator takes a snapshot of your current portfolio and highlights stocks or cryptoassets that are eligible for harvesting.

It shows:

• capital gains, calculated according to the FIFO method
• positions with unrealised losses that could offset your taxable gains

It also simulates the overall tax impact on your portfolio, based on your account data, and includes a summary of realised and unrealised positions.

Does the simulator automatically close my positions?

No. The simulator only helps you to identify potential opportunities.

If you wish to close a position, you can do so from within the simulator by clicking Harvest, which will open the close trade confirmation window.

The simulator is for informational purposes only and should not be considered tax advice. etoro does not guarantee that closing a position will result in tax savings.

Why is my profit/loss on etoro different from FIFO?

• etoro’s P/L reflects the percentage difference in a specific position’s value.
• FIFO P/L assumes the first shares bought are sold first, and calculates the percentage difference accordingly.

Example: If you bought a stock position at 500 DKK and then another position on the same stock at 700 DKK, regardless of which position you close first, the FIFO method assumes you sold the position bought at 500 DKK first. This impacts the gain or loss calculated for tax purposes.

Important notes

• The live FIFO P/L in the simulator may display with a delay of up to 2 seconds.
• When a position is closed, the simulator automatically updates the cost basis of other open positions on the same asset according to FIFO.
• The simulator does not account for assets held outside etoro.

etoro cannot guarantee that closing a position will result in tax savings. The tool shows estimates based on FIFO tax calculations and local tax rules. You should consult a qualified tax adviser to confirm how relevant tax rules apply to your specific situation before making any financial or investment decisions.