Tax Loss Harvesting is a strategy portfolio managers and/or end-users utilize to minimize their tax liabilities by offsetting gains with losses in their portfolio. The goal is to lower the overall taxable income and reduce the amount of taxes owed by the ultimate taxpayer.

TaxBit's Inventory APIs enable digital asset platforms to build Tax Loss Harvesting and other Portfolio Optimization experiences within their web/mobile applications. Specifically, the APIs can fetch a user's current inventory lots, where a "lot" includes details about the quantity, purchase cost, and acquisition date. The unrealized gain/loss for each lot can be calculated using this inventory lot data and the current asset spot price. These calculated unrealized gains can then be displayed to the user in a portfolio performance or trading workflow experience, which enables the user to make more optimal trading decisions.

The rest of this guide will walk through the prerequisite data integration and the API call sequences to build a hypothetical experience for a single platform end user.