Finance Tools
Tax Loss Harvesting Benefit Calculator
Estimate potential tax savings from tax-loss harvesting by entering realized gains, harvested losses, and your capital gains tax rate.
Tax Loss Harvesting Benefit Calculator
Tax-loss harvesting can reduce taxes by using realized capital losses to offset realized capital gains. This calculator estimates taxable gains after harvesting and your potential tax savings using a simple tax-rate assumption.
Results
Taxable Gains (before): $10,000
Loss Offset Used: $4,000
Taxable Gains (after): $6,000
Estimated Tax (before): $2,000
Estimated Tax (after): $1,200
Estimated Tax Savings: $800
Unused Losses (carryforward potential): $0
Inputs used: gains $10,000, losses $4,000, tax rate 20.00%. This is a simplified estimate for planning.
How to use
- Enter your realized capital gains amount for the period.
- Enter how much capital loss you plan to harvest.
- Enter your estimated capital gains tax rate.
- Optionally add a loss offset cap to model limits.
- Review estimated taxable gains and tax savings.
FAQ
What is tax-loss harvesting?
It’s a strategy where you realize investment losses to offset realized gains, potentially reducing taxes. Rules vary by country, so use this as a planning estimate.
Can I harvest losses and buy back immediately?
Some jurisdictions have rules that disallow losses if you repurchase substantially identical assets too soon (often referred to as wash-sale-like rules). Confirm your local rules.
What happens to unused losses?
In many systems, unused losses may carry forward to future years, but treatment and caps differ. This tool shows unused losses as a simple planning value.
How to use this tax loss harvesting benefit calculator
- Enter your realized capital gains amount for the year (or period).
- Enter the amount of capital losses you plan to harvest.
- Enter your capital gains tax rate (%).
- Optionally enter a maximum loss offset limit if you want to cap offsetting.
- Review estimated taxable gains after harvesting and potential tax savings.
Example
If realized gains are $10,000, harvested losses are $4,000, and capital gains tax rate is 20%, taxable gains become $6,000 and estimated tax savings are $800.
- Taxable gains after harvesting = $10,000 − $4,000 = $6,000
- Tax before harvesting = $10,000 × 0.20 = $2,000
- Tax after harvesting = $6,000 × 0.20 = $1,200
- Estimated tax savings = $2,000 − $1,200 = $800
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