This is somewhat similar to the ideas I mentioned on the Roth conversion ladder changemap ticket, and suggests a way to do roth conversions, and tax gain harvesting with the same cashflow priority.

We discussed this a bit on the discord as well. It’s basically a special type of cashflow priority, where the money being spent is on taxes, if any, from the action of taking a step up in basis on a taxable account. (i.e. selling and repurchasing the same assets), or taxes paid to convert tax-deferred money to roth.

Tax gain harvesting is less talked about than tax loss harvesting, but is a powerful strategy for people who’s expenses keep them below the 0% to 15% cap gains breakpoint.

In either case: 1. taxable account and capital gains harvesting, or 2. roth conversions I think it would work like this:

• 1. You select an account (taxable or tax-deferred), based on the account type you selected the cashflow priority knows which kind of income you’re harvesting (long-term capital gains, or ordinary income).
• 1. you select a threshold up to which you’d like to convert (e.g. up to the 0%-to-15% cap gains threshold, or the 12%-22% ordinary income threshold), or possibly an amount of additional taxes you’d be willing to pay.
• 1. If the selected account type is tax-deferred, you’d need to select a Roth destination account for the proceeds. In the taxable account scenario, the funds stay where they are, and receive a step-up in cost basis.