Tax-Aware Backtesting
Tax-aware portfolio backtesting with explicit assumptions
Backtest portfolios with taxable-account assumptions, lot behavior, rebalancing rules, and reproducibility metadata kept visible.
Pre-tax results can be misleading when turnover, taxable accounts, embedded gains, or withdrawal rules affect the final outcome.
Review filing status, tax lots, rebalancing policy, price mode, and date range alongside the result.
Start with one question
Explore the results
After-tax portfolio comparison
Does the same allocation still hold up after taxes, cash flows, and rebalancing?
Run tax-aware backtest
Tax-lot implementation check
Which realized gains, losses, and wash-sale warnings does this run carry?
Open Portfolio Backtest
What tax-aware mode adds
- Capital-gain and loss accounting tied to the modeled trade path.
- Rebalancing and cash-flow assumptions that can change realized taxes.
- Saved analysis metadata so you can inspect or reopen a result later.
When it matters most
- Taxable accounts with material turnover.
- Strategies where the pre-tax winner may not be the after-tax winner.
- Withdrawal, contribution, or rebalancing policies that create taxable events.
What to verify
Check the exact date range, price mode, benchmark, tax profile, lot assumptions, and rebalance policy before interpreting the result. Small assumption changes can move after-tax outcomes.
What it is not
This is educational research software. It is not tax, legal, investment, or filing advice, and it cannot determine whether a transaction is appropriate for a specific household.
FAQ
- Can a tax-aware backtest reverse the pre-tax ranking?
- Yes. Turnover, realization timing, cash flows, and account assumptions can change after-tax ending value even when pre-tax returns look similar.
Related pages
Portfolio Backtest
Configure allocations, cash flows, and tax settings.
Roth Conversion Planner
Model conversion schedules with IRMAA, ACA, LTCG, NIIT, and RMD constraints visible.
Asset Location Backtesting
Compare account-aware household scenarios with tax treatment visible.
Household Portfolio Tax Simulation
Model account types, taxable lots, RMDs, wash-sale context, and after-tax results together.
Tax-aware Monte Carlo
Simulated retirement paths after the run applies tax context.
Tax-aware docs
Accounting assumptions and interpretation guidance.