BOSTON, June 15, 2020 /PRNewswire/ — Eaton Vance Corp. (NYSE: EV) (Eaton Vance) announced today the availability of the 2020 update of the Eaton Vance Parametric Investment Tax Calculator at eatonvance.com/mytaxrate and parametricportfolio.com/mytaxrate. The Investment Tax Calculator is designed to assist U.S. individual taxpayers and their advisors in understanding the income taxes that apply to their investment income and gains so that they can make better-informed investment decisions. Based on user inputs for taxable income, tax filing status and place of residence, the calculator determines the total tax rate – including federal, state and local income taxes – that applies to an incremental dollar of the investor’s ordinary investment income, in-state and out-of-state municipal bond and U.S. Treasury interest income, qualified dividend income, net realized long-term and short-term capital gains, and qualified retirement plan withdrawals.
The 2020 update of the Investment Tax Calculator reflects available adjustments to the federal, state and local income tax rates and income brackets for 2020, as well as changes in the treatment of taxable income and gains taking effect this year. The 2020 update includes comprehensive coverage of the federal, state, city, county and other local income taxes applicable to the investment income and gains of resident individual taxpayers across the 50 states and the District of Columbia.
The Investment Tax Calculator includes a series of tools to enable taxpaying investors and their advisors to:
- compare the after-tax yields of in-state municipal bonds versus out-of-state municipal bonds, U.S. Treasuries and fully taxable investments (see eatonvance.com/yield );
- analyze the impact of changes in interest rates on the returns of laddered municipal bond and corporate bond investments (see eatonvance.com/ladders and parametricportfolio.com/ladders ). As a new feature, the 2020 update includes an analysis of the potential tax alpha from harvesting capital losses on a laddered municipal bond portfolio in a rising interest rate environment.
“Going back decades, our conversations with investors and financial advisors point to the need for greater understanding of how taxes affect net investment returns, which vary greatly based on the type of investment and the investor’s individual tax circumstances,” said Thomas E. Faust Jr., chairman and chief executive officer of Eaton Vance. “Too often, taxpaying investors leave returns on the table by failing to manage tax effects optimally. By making these tools available, we hope to promote better understanding of investment tax effects to help investors achieve better after-tax returns.”
“Together with Eaton Vance, Parametric is committed to providing advanced tax solutions for investors and their advisors,” said Brian D. Langstraat, chief executive officer of Parametric Portfolio Associates LLC (Parametric). “As a leader in customized individual separate accounts, we strive to deliver investment results that best fit each investor’s particular tax situation.”
About Eaton Vance
Eaton Vance provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Through principal investment affiliates Eaton Vance Management, Parametric, Atlanta Capital, Calvert and Hexavest, the Company offers a diversity of investment approaches, encompassing bottom-up and top-down fundamental active management, responsible investing, systematic investing and customized implementation of client-specified portfolio exposures. As of April 30, 2020, Eaton Vance had consolidated assets under management of $465.3 billion. Exemplary service, timely innovation and attractive returns across market cycles have been hallmarks of Eaton Vance since 1924. For more information, visit eatonvance.com.
Parametric uses investment science to build and manage systematic investment strategies and to implement custom portfolio solutions providing clients with targeted investment exposures with control of costs and taxes. Based on principles of intellectual rigor, ingenuity and transparency, Parametric seeks to deliver repeatable client outcomes with consistently high levels of service and maximum efficiency. As of April 30, 2020, Parametric managed $287.4 billion in assets on behalf of institutions, high-net-worth individuals and fund investors. Headquartered in Seattle, Parametric also has offices in Minneapolis, Westport, Connecticut, Boston, and Sydney, Australia. Parametric is a subsidiary of Eaton Vance. For more information, visit parametricportfolio.com.
Eaton Vance does not provide legal or tax advice. The output of the Investment Tax Calculator is for educational purposes only and should not be considered investment, legal or tax advice. It is intended for use by U.S. individual taxpayers resident in the 50 states or the District of Columbia, and is not applicable to trusts, estates, corporations or persons subject to special rules under federal, state or local income tax laws. The indicated tax treatment of investment income and gains applies to positions in securities held outside qualified retirement plans and other tax-deferred or tax-exempt investment vehicles. The output is general in nature and is not intended to serve as the primary or sole basis for investment or tax-planning decisions.
For more individualized information, you should consult your tax advisor or investment professional. You bear sole responsibility for any decisions you make based on the output of the Investment Tax Calculator. The calculator makes certain assumptions that may not apply to you. The calculator has many inherent limitations, and individual results may vary.