Compare ways to reach a target allocation using a simulated taxable account. See which trades meet the risk limit and how taxes and trading fees affect the decision.
The trade list and cost comparison follow the selected method.
Positive bars reduce modeled cost. Negative bars add cost.
This comparison includes an assumed future tax cost and a risk penalty. The result is a modeled trade-off, not a tax refund.
Same portfolio, risk limit and tax assumptions
| Method | Annual TE | Modeled tax cost | Trading fees | Total modeled cost | Feasibility |
|---|
The after-trade weights follow the selected decision in the table.
Each point is a feasible rebalancing method
| Trade | Cost basis pool or lot | Shares | Trade notional |
|---|
Canadian sales use the average ACB for each security. U.S. sales show individual lots. These orders are simulated.
Based on a simulated history of CAD purchases
| Pool | ETF | Shares | Basis / share | Price | Unrealized G/L | Pre-trade flag |
|---|
Chooses trades using risk and trading fees. The resulting tax cost is reported afterward.
Uses the risk-only trades. The U.S. model selects the cheapest tax lots to sell. Canada uses one averaged ACB per security, so lot selection cannot change the result.
Solves a relaxed problem, fixes buy and sell directions, then checks nearby feasible allocations.
Checks all 81 buy, sell and hold direction combinations for this four-asset example. The comparison applies to the simplified continuous-share model.
In Canada, the cost basis of identical securities is averaged. Superficial-loss treatment can depend on purchases within 30 days before or after the sale and on holdings 30 days afterward, including affiliated persons. This simulation flags cases for review but cannot determine the actual tax treatment.