Method, system, and apparatus for managing taxable events within a portfolio

• US 6,516,303 B1
• Filed: 10/17/2000
• Issued: 02/04/2003
• Est. Priority Date: 09/14/1998
• Status: Expired due to Term

• Current Assignee: Folio Financial Incorporated (Goldman Sachs Group Incorporated)
• Original Assignee: FOLIOfn Incorporated (Goldman Sachs Group Incorporated)
• Inventors: Wallman, Steven M. H.
• Primary Examiner(s): KRAMER, JAMES A
• Assistant Examiner(s): Meinecke-Diaz, Susanna
• Application Number:
  US09/688,975
• Time in Patent Office: 840 Days
• Field of Search: 705/30, 705/31, 705/35-37
• US Class Current: 705/36.00T
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A method is disclosed for providing management of taxable events. The disclosed method includes determining a proceeds and tax consequence that would result from trading each of various combinations of a plurality of assets/liabilities. The disclosed method further includes displaying the proceeds and tax consequence from each potential trade in a computer-generated graph of at least two dimensions.

Claims

1. A method for providing management of taxable events, comprising:

determining a proceeds and tax consequence that would result from trading each of various combinations of a plurality of assets/liabilities;

displaying the proceeds and tax consequence from each potential trade in a computergenerated graph of at least two dimensions.

2. The method according to claim 1, further comprising trading a particular combination of assets/liabilities.

3. The method according to claim 1, further comprising trading a particular combination of assets/liabilities based upon at least one of a desired tax consequence and a desired proceeds.

4. The method according to claim 1, further comprising trading a particular combination of assets/liabilities based upon a desired combination of tax consequence and proceeds selected by a user by clicking on a point of the graph representing said desired combination of tax consequence and proceeds.

5. The method according to claim 1, wherein the graph has a first axis representing the potential proceeds and a second axis representing the potential tax consequence that would result from the potential trades of the various combinations of the plurality of assets/liabilities, each potential trade displayable as a point of the graph.

6. The method according to claim 1, wherein the graph has three axes, in which one axis identifies potential tax consequence, another axis identifies potential proceeds, and the third axis identifies time.

7. The method according to claim 1, wherein the graph has three axes, in which one axis identifies potential tax consequence, another axis identifies potential proceeds, and the third axis identifies particular assets/liabilities.

8. The method according to claim 1, further comprising maintaining an association of corresponding assets/liabilities to each of a plurality of points of the graph.

9. The method according to claim 1, further comprising enabling a user to indicate at least one of a desired potential tax consequence and a desired potential proceeds by selecting a point of the graph.

10. The method according to claim 1, further comprising enabling a user to indicate a desired potential tax consequence and a desired potential proceeds by selecting a point of the graph, and identifying to the user which of the assets/liabilities must be traded to obtain the desired tax consequence and desired potential proceeds.

11. The method according to claim 1, further comprising identifying which of the assets/liabilities must be traded to obtain a desired tax consequence and desired potential proceeds.

12. The method according to claim 1, further comprising identifying a specific potential tax consequence and a specific potential proceeds associated with a point of the graph.

13. The method according to claim 1, further comprising highlighting significant points of the graph.

14. The method according to claim 1, further comprising highlighting significant lines in the graph.

15. The method according to claim 1, further comprising determining a tax treatment for each asset/liability of a particular combination.

16. The method according to claim 1, further comprising displaying with the graph a tax treatment for each asset/liability of a particular combination.

17. The method according to claim 1, further comprising displaying with the graph a tax treatment for each asset/liability, the graph including one composite graph of two such graphs superimposed on each other.

18. The method according to claim 1, further comprising determining a change in tax consequences resulting from delaying a trade of a particular combination of assets/liabilities.

19. The method according to claim 1, further comprising determining a change in tax treatment resulting from delaying a trade of a particular combination of assets/liabilities.

20. The method according to claim 1, further comprising determining a change in tax consequences resulting from a passage of time in an event of a trade of a particular combination of assets/liabilities.

21. The method according to claim 1, further comprising determining a change in tax treatment resulting from a passage of time in an event of a trade of a particular combination of assets/liabilities.

22. A computer program product for managing taxable events, comprising:

a tax basis registry that stores a basis for each of a plurality of assets/liabilities;

a calculator routine that calculates a tax consequence and proceeds for a potential trade of each asset/liability in the registry selected for trading; and

a graph creation routine that creates a multidimensional graphical representation of the potential tax consequences and the proceeds.

23. The computer program product of claim 22, further comprising a user interface that interacts with a user to enable the user to view a desired combination of tax consequences and potential proceeds.

24. The computer program product of claim 22, further comprising a transmission routine for transmitting a graphical representation of the tax consequence and proceeds for each potential trade.

25. The computer program product of claim 22, further comprising a list routine for listing assets/liabilities that must be traded to meet the tax consequences and potential proceeds desired by a user.

26. The computer program product of claim 22, further comprising an authorization routine for enabling a user to authorize a trade of specific assets/liabilities.

27. The computer program product of claim 22, further comprising a trade confirmation routine for providing a user with confirmation of a trade of specific assets/liabilities.

28. The computer program product according to claim 22, further comprising an inter-program routine that interacts with another computer program that calculates a taxable effect of a potential trade.

29. The computer program product according to claim 22, further comprising an expert agent that manages tax consequences and alerts a user to various strategies that the user may wish to employ.

30. The computer program product according to claim 29, wherein the expert agent monitors the user'"'"'s tax position by comparing tax consequences from various proposed or available transactions and determining whether any such transactions achieve goals preset by the user.

31. The computer program product according to claim 30, wherein the goals include predetermined levels of at least one of long-term gain, long-term loss, short-term gain, and short-term loss.

32. The computer program product according to claim 30, wherein the goals include predetermined levels of proceeds.

33. The computer program product according to claim 30, wherein the goals include predetermined levels of taxable effects.

34. The computer program product according to claim 30, wherein the expert agent alerts the user as to the satisfaction of such goals by an e-mail alert.

35. The computer program product according to claim 30, wherein the expert agent alerts the user as to the satisfaction of such goals by a notice in file.

36. The computer program product according to claim 30, wherein the expert agent alerts the user as to the satisfaction of such goals.

37. The computer program product according to claim 29, wherein the expert agent sends an order to an electronic trading system to execute a transaction identified by the expert agent without any user intervention.

38. The computer program product according to claim 29, wherein the expert agent sends an order to an electronic trading system to execute a transaction identified by the expert agent with confirmation by the user.

39. The computer program product according to claim 29, wherein the expert agent sends an order to an electronic trading system to execute a transaction identified by the expert agent.

40. The computer program product according to claim 29, wherein the expert agent sends an order to an electronic trading system to execute a transaction.

41. A method for providing management of taxable events, comprising:

obtaining a proceeds and tax consequence that would result from trading each of various combinations of a plurality of assets/liabilities;

transmitting via a network the proceeds and tax consequence from each potential trade in a computer-generated graph of at least two dimensions.