The OPTI method lets you choose between two calculation approaches depending on how long-term trades are taxed in your country. You can configure this preference directly in the tax report settings.
Option 1: Long-term trades are completely tax-free (e.g., Germany)
In this case, the OPTI method calculates the lowest possible tax result by prioritizing taxable and tax-free transactions as shown below:
Option 2: Long-term trades taxed at a reduced rate (e.g., USA)
Here, the method calculates results by factoring in the reduced tax rate and optimizes accordingly:
Explanation of Sorting by Cost Basis
Short losses, Short gains, Long losses, Long gains → refer to transaction categories.
Ascending means sorting from the smallest cost basis to the largest, while descending means the reverse.
Important Notes
If the OPTI method was used before July 30, 2025, you must generate a new reallocation report before using it again.
The update on July 30, 2025, introduced changes regarding tax-free transactions, which makes this step necessary.
For detailed assistance, see: Navigating IRS Revenue Procedure 2024-28.