Tax Loss Harvesting Calculator
Calculate tax savings from offsetting capital gains with losses
Investment Details
Enter your gains and losses
Total realized gains this year
Total realized losses this year
Your long-term capital gains rate (0%, 15%, or 20%)
Annual ordinary income for tax bracket
Tax Savings Analysis
Total Tax Savings$1600.00
Net Capital Gains$2000.00
Net Capital Losses$0.00
Ordinary Income Offset$0.00
Loss Carryforward$0.00
Tax on Original Gains$2000.00
Tax on Net Gains$400.00
Important Rules
Wash Sale Rule: Cannot buy substantially identical security within 30 days before or after sale.
$3,000 Limit: Maximum loss that can offset ordinary income per year.
Carryforward: Unused losses can be carried forward indefinitely to future years.
Tax Loss Harvesting Guide
How It Works
- Offset Gains: Use losses to reduce or eliminate capital gains taxes
- Reduce Income: Offset up to $3,000 of ordinary income annually
- Preserve Strategy: Carryforward unused losses to future years
- Rebalance Portfolio: Opportunity to adjust asset allocation
Best Practices
- Harvest losses throughout the year, not just December
- Consider short-term vs long-term loss priorities
- Replace sold positions with similar (not identical) assets
- Keep detailed records for tax reporting
- Consult tax advisor for specific situation