Can a tax-aware backtest reverse the pre-tax ranking?

Yes. Turnover, realization timing, cash flows, and account assumptions can change after-tax ending value even when pre-tax returns look similar.

Tax-Aware Backtesting

Tax-Aware Portfolio Backtesting With Explicit Assumptions

Backtest portfolios with taxable-account assumptions, lot behavior, rebalancing rules, and reproducibility metadata kept visible.

Pre-tax results can be misleading when turnover, taxable accounts, embedded gains, or withdrawal rules affect the final outcome.

ArthaPilot's tax-aware workflow is built to keep the accounting assumptions visible: filing context, tax lots, rebalancing policy, price mode, date range, and result snapshot.

Run Tax-Aware Backtest Read Tax-Aware Docs

Start with one question

See the workflow before opening the tool

After-tax portfolio comparison

Does the same allocation still hold up after taxes, cash flows, and rebalancing?

Output previewPre-tax and after-tax ending values | tax drag by year | saved assumptions

Run Tax-Aware Backtest →

Tax-lot implementation check

Which realized gains, losses, and wash-sale warnings are attached to this run?

Output previewRealized gains | lot activity | warning and reproducibility metadata

Open Portfolio Backtest →

What tax-aware mode adds

Capital-gain and loss accounting tied to the modeled trade path.
Rebalancing and cash-flow assumptions that can change realized taxes.
Saved run metadata so a result can be inspected or reopened later.

When it matters most

Taxable accounts with material turnover.
Strategies where the pre-tax winner may not be the after-tax winner.
Withdrawal, contribution, or rebalancing policies that create taxable events.

What to verify

Check the exact date range, price mode, benchmark, tax profile, lot assumptions, and rebalance policy before interpreting the result. Small assumption changes can move after-tax outcomes.

What it is not

This is educational research software. It is not tax, legal, investment, or filing advice, and it cannot determine whether a transaction is appropriate for a specific household.

FAQ

Can a tax-aware backtest reverse the pre-tax ranking?: Yes. Turnover, realization timing, cash flows, and account assumptions can change after-tax ending value even when pre-tax returns look similar.

Portfolio Backtest

Configure allocations, cash flows, and tax settings.

Roth Conversion Planner

Model conversion schedules with IRMAA, ACA, LTCG, NIIT, and RMD constraints visible.

Asset Location Backtesting

Compare account-aware household scenarios with tax treatment visible.

Household Portfolio Tax Simulation

Model account types, taxable lots, RMDs, wash-sale context, and after-tax results together.

Tax-Aware Monte Carlo

Simulated retirement paths after tax context is applied.

Tax-Aware Docs

Accounting assumptions and interpretation guidance.