Markets are unpredictable—but your tax strategy doesn't have to be. At Range, we focus on the strategies that actually move the needle for your wealth through automated tax-loss harvesting and direct indexing.

2025 Results

Range’s direct indexing strategy has generated meaningful tax savings for Range members:

• Average losses harvested in 2025: $16,000 for our members with $950k–$1.5M in assets managed by Range  
• Estimated average tax offsets: $6,000 per participating member (assuming 37% combined federal and state tax rate)* 

These results are clear: proactive management can turn market volatility into tax savings while maintaining full market exposure.

Understanding Tax-Loss Harvesting

Tax-loss harvesting is the practice of selling securities at a loss to offset capital gains and reduce tax liability, while maintaining market exposure to potentially capture market upside. While the concept is straightforward, its execution—particularly when automated—can deliver substantial benefits.

How Automated Tax-Loss Harvesting Works

Range’s automated tax-loss harvesting system works continuously in the background to capture tax savings without requiring any action from you.

1. Continuous Monitoring Our automated tax-loss harvesting system tracks all positions in real-time, identifying securities trading below their purchase price.

2. Harvest Losses When opportunities arise, the system automatically sells securities at a loss to realize capital losses you can use to offset gains or ordinary income.

3. Maintain Market Exposure Proceeds are immediately reinvested in similar securities with nearly identical risk and return characteristics—aiming to continue capturing potential market upside.

4. Avoid Wash Sales Range automated tax-loss harvesting is designed to avoid trading that violates IRS wash sale rules within accounts we manage, which prohibit buying "substantially identical" securities within 30 days before or after a sale.

The Result: You capture tax benefits while staying fully invested.

The Benefits of Tax-Loss Harvesting

Tax-loss harvesting can help you save on taxes in multiple ways:

Offsetting Capital Gains:

Harvested losses can directly offset your taxable capital gains 1:1. For example, if you realized $10,000 in capital gains but harvested $5,000 in losses, you'll only owe taxes on $5,000 of gains—potentially cutting your tax bill substantially.

Offsetting Short-Term vs. Long-Term Gains:

Short-term gains (on investments held less than a year) are taxed at higher rates than long-term gains. The IRS lets you match short-term losses against short-term gains first, minimizing the amount taxed at those higher rates. Any remaining losses can then offset long-term gains, maximizing your tax savings.

Reducing Ordinary Income:

If your losses exceed your capital gains, you can apply up to $3,000 of the excess against your ordinary income each year. For someone in the 37% tax bracket, this deduction alone saves approximately $1,100 in taxes.

Carrying Losses Forward:

Can't use all your losses in one year? You can carry the remainder forward indefinitely. Say you harvested $10,000 in losses but only had $3,000 in gains this year. You'd offset those $3,000 in gains, deduct $3,000 from your ordinary income, and bank the remaining $4,000 to use in future tax years—creating a reserve of tax savings for years to come.

What is Direct Indexing?

Direct indexing is an investment approach that allows investors to own the individual securities that make up an index fund, unlocking even more potential opportunities for tax-loss harvesting while maintaining the same market exposure granted by the index.

Range's Direct Indexing Approach

Direct Indexing is available for Range members who subscribe to our Platinum and Titanium plans. These members can potentially maximize tax-loss harvesting opportunities across index funds tracking global markets, not just the S&P 500. We offer direct indexing portfolios focused on US Large-Cap, US Mid-Cap, US Small-Cap, and International stocks. All with 0% AUM fees** and competitive custodian fees.

Through Range’s direct indexing approach, you can:

• Own the actual individual securities that make up an index
• Potentially unlock hundreds of tax-loss harvesting opportunities across individual stocks
• Maintain market exposure while maximizing tax efficiency
• Harvest losses at the individual security level continuously

The Key Difference: Instead of owning a few ETFs, your diversified portfolio is made up of hundreds of individual stocks that get you to your target allocation—creating exponentially more opportunities to harvest losses without changing your market exposure.

The Bottom Line

You can't control market ups and downs, but you can control your strategy to take advantage of them. Range's tax-loss harvesting and direct indexing strategy can turn market volatility into a tax advantage—with an average of $6,000 in estimated tax offsets per participating member in 2025.

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^Disclosures:

^{* Based on Range Advisory taxable households with $950k–$1.5M (231 households), YTD through Aug 31, 2025: average realized losses were $16,320; 37% effective tax rate. Actual tax outcomes vary and aren’t guaranteed; loss benefits generally apply only to the extent losses offset capital gains (and up to $3,000 of ordinary income).}

^{** Brokerage fees, transaction charges, and other applicable platform fees imposed by our custodian are not included in your membership and will be passed through to you as the Member. Additionally, fund fees charged by third-party managers (such as mutual fund or ETF expense ratios) will apply; these fees are separate from your membership and are not received or shared by Range in any way.}

^{‍The information contained in this communication is for informational purposes only. This content may not be relied on in any manner as specific legal, tax, regulatory, or investment advice. While we strive to present accurate and timely content, tax laws and regulations are subject to change, and individual circumstances can vary. You should not rely solely on the information contained here when making decisions regarding your taxes or financial situation. We strongly recommend consulting with a certified tax professional, accountant, or legal advisor to address your specific needs and ensure compliance with applicable laws.}

^{Range Advisory, LLC does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future events. All investments involve a high degree of risk, including the possible loss of some or all of an investment. Range Advisory, LLC. is an SEC registered investment adviser. Registration with the SEC does not imply any level of skill or training. Range Advisory, LLC pricing and additional information can be found at www.range.com.}