Where is the magnet on the spin on filter? Also, does it damage the Allison if I put it into "tow/haul" when I am not towing or hauling anything? Dabney

The magnet is stuck on the top of the filter outside of where the threads are.

No it doesn't hurt the trans to use tow/haul when you are not hauling.

The manual states that the tow haul is safe to use all the time, but due to different shift points, the fuel mileage won't be as good. (When turned on and not towing)