Taxes - Client Presets

The Taxes area of the Advisor Portal > Client Settings > Client Presets tab provides a number of tax-related settings that can be adjusted at a global level for new clients. Depending on your specific account setup, your Client Settings tab may be located in the °°° More Menu.
Most of these settings live within the Gear Icon > Settings > Tax Assumptions tab of each client plan. Any changes made within this area will be applied to new clients created in RightCapital going forward. Existing clients will not be impacted.

Tax Law

This controls the default Tax Law for new clients, which determines the tax framework used in calculating the client's projections:
  • TCJA sunset 2025: reflects all updated provisions related to TCJA, including the sunsetting of most individual income tax provisions in 2025.
  • TCJA no sunset: reflects all updated provisions related to TCJA for the entire duration of the plan (ignores the sunset provisions).
  • 2017 tax law: reflects all tax provisions prior to the enactment of TCJA, as would be used in clients' 2017 tax calculations.
By default, this will be set to TCJA sunset 2025. You can read more about TCJA and its impact on RightCapital in the article linked below:

Average AUM fees

This controls the default Average AUM fees for new clients, which will reduce all non-annuity invested asset returns by the indicated percentage. The default setting is 0%. Within a client plan, this parameters can be adjusted within the Profile > Expenses > Tax and Fees card.

Portfolio turnover

This controls the default Portfolio turnover for new clients, which represents annual portfolio balancing and will generate capital gains within your plans. This parameter stems from the Gear Icon > Settings > Tax Assumptions tab of each plan. By default, this will be set to 5%

Qualified dividend

This controls the default assumption for qualified dividends for new clients, which represents the percentage of dividends that are assumed to be tax-qualified. This parameter stems from the Gear Icon > Settings > Tax Assumptions tab of each plan. By default, this will be set to 85%.

Long term capital gain

This controls the default assumption for long-term capital gains for new clients, which represents the percentage of capital gains that are assumed to be long-term. This parameter stems from the Gear Icon > Settings > Tax Assumptions tab of each plan. By default, it will be set to 90%.
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