The Taxes area of the Advisor Portal > Client Settings > Client Presets tab provides four 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.
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%.
