Sales Priority helps advisors compare held equity lots and identify which shares may be better candidates to sell first.
The score ranges from 1 to 100. A higher score means the lot is more attractive to consider for sale before other held shares.
The score considers:
- Tax treatment: Long-term holdings generally score higher than short-term holdings.
- Expected tax cost: Lots with lower estimated tax drag receive higher scores.
- Net proceeds: Lots that preserve more after-tax value are prioritized.
- Holding period timing: Short-term lots close to long-term capital gains eligibility may score lower.
- Concentration impact: Shares in companies that make up a larger portion of the client’s holdings may receive higher priority.
Sales Priority is intended as a planning aid. It does not automatically mean a sale should happen; advisors should also consider liquidity needs, client goals, trading windows, 10b5-1 restrictions, diversification targets, and tax strategy.