feat: add portfolio return taxes

app/data/taxes.py

@@ -136,7 +136,7 @@ class Taxes(util.FloatRepr):
     income: float
     medicare: float
     social_security: float
-    portfolio: float = -1
+    portfolio: float
 
     def __float__(self):
         return float(
@@ -152,19 +152,17 @@ def __float__(self):
 
 
 def calc_taxes(
-    total_income: Income, controller: JobIncomeController, state: State
+    total_income: Income,
+    job_income_controller: JobIncomeController,
+    state: State,
+    portfolio_return: float,
 ) -> Taxes:
     """Calculates taxes for a given interval
 
-    Args:
-        total_income (Income)
-        controller (JobIncomeController)
-        state (State)
-
     Returns:
         Taxes: Attributes: income, medicare, social_security, portfolio
     """
-    taxable_income = controller.get_taxable_income(state.interval_idx)
+    taxable_income = job_income_controller.get_taxable_income(state.interval_idx)
     job_income_tax = _calc_income_taxes(interval_income=taxable_income, state=state)
     pension_income_tax = 0.8 * _calc_income_taxes(
         interval_income=total_income.social_security_user
@@ -175,7 +173,11 @@ def calc_taxes(
     return Taxes(
         income=job_income_tax + pension_income_tax,
         medicare=-total_income.job_income * MEDICARE_TAX_RATE,
-        social_security=_social_security_tax(controller, state),
+        social_security=_social_security_tax(job_income_controller, state),
+        # Assumes user tax-loss harvestes, so tax is always has opposite sign of return
+        # There is technically an annual limit to harvesting, but losses carry over,
+        # so for simplicity we assume it is always harvested the year it is incurred.
+        portfolio=-portfolio_return * state.user.portfolio.tax_rate,
     )
 
 

app/models/config.py

@@ -216,15 +216,15 @@ class Portfolio(BaseModel):
     Attributes
         current_net_worth (float): Defaults to 0
 
-        drawdown_tax_rate (float): Defaults to 0.1
+        tax_rate (float): Defaults to 0.1
 
         annuity (AnnuityConfig): Defaults to None
 
         allocation_strategy (AllocationOptions)
     """
 
     current_net_worth: float = 0
-    drawdown_tax_rate: float = 0.1
+    tax_rate: float = 0.1
     annuity: Optional[AnnuityConfig] = None
     allocation_strategy: AllocationOptions
 

app/models/financial/state_change.py

@@ -129,23 +129,22 @@ def _gen_net_transactions(self) -> _NetTransactions:
         portfolio_return = self._state.net_worth * np.dot(
             self._economic_data.asset_rates, self._allocation
         )
-        costs = self._gen_costs(income)
-        annuity = self._controllers.annuity.make_annuity_transaction(
-            state=self._state,
-            is_working=self._controllers.job_income.is_working(
-                self._state.interval_idx
-            ),
-            initial_net_transaction=income.job_income + costs,
-        )
+        costs = self._gen_costs(income, portfolio_return)
 
         return _NetTransactions(
             income=income,
             portfolio_return=portfolio_return,
             costs=costs,
-            annuity=annuity,
+            annuity=self._controllers.annuity.make_annuity_transaction(
+                state=self._state,
+                is_working=self._controllers.job_income.is_working(
+                    self._state.interval_idx
+                ),
+                initial_net_transaction=income.job_income + costs,
+            ),
         )
 
-    def _gen_costs(self, income: Income) -> _Costs:
+    def _gen_costs(self, income: Income, portfolio_return: float) -> _Costs:
         spending = _calc_spending(
             state=self._state,
             config=self._state.user.spending,
@@ -162,7 +161,8 @@ def _gen_costs(self, income: Income) -> _Costs:
             ),
             taxes=calc_taxes(
                 total_income=income,
-                controller=self._controllers.job_income,
+                job_income_controller=self._controllers.job_income,
                 state=self._state,
+                portfolio_return=portfolio_return,
             ),
         )

app/models/simulator.py

@@ -90,16 +90,6 @@ def as_dataframes(self) -> list[pd.DataFrame]:
         """
         Returns a list of pandas DataFrames, where each DataFrame
         represents a trial in the simulator.
-        Each DataFrame contains the following columns:
-        - Date: The date of the interval.
-        - Net Worth: The net worth of the interval.
-        - Inflation: The inflation rate of the interval.
-        - Job Income: The job income of the interval.
-        - SS User: The social security income of the interval for the user.
-        - SS Partner: The social security income of the interval for the partner.
-        - Pension: The pension income of the interval.
-        - Portfolio Return: The portfolio return of the interval.
-        - Annuity: The annuity income of the interval.
         """
         columns = [
             "Date",
@@ -115,6 +105,7 @@ def as_dataframes(self) -> list[pd.DataFrame]:
             "Income Taxes",
             "Medicare Taxes",
             "Social Security Taxes",
+            "Portfolio Taxes",
             "Total Taxes",
             "Total Costs",
             "Portfolio Return",
@@ -138,6 +129,7 @@ def as_dataframes(self) -> list[pd.DataFrame]:
                     interval.state_change_components.net_transactions.costs.taxes.income,
                     interval.state_change_components.net_transactions.costs.taxes.medicare,
                     interval.state_change_components.net_transactions.costs.taxes.social_security,
+                    interval.state_change_components.net_transactions.costs.taxes.portfolio,
                     interval.state_change_components.net_transactions.costs.taxes,
                     interval.state_change_components.net_transactions.costs,
                     interval.state_change_components.net_transactions.portfolio_return,

tests/sample_configs/full_config.yml

@@ -8,7 +8,7 @@ net_worth_target: 1500
 
 portfolio:
   current_net_worth: 250
-  drawdown_tax_rate: 0.1
+  tax_rate: 0.1
   annuity:
     net_worth_target: 500
     contribution_rate: 0.1