How much can tax-loss harvesting save?

By offsetting capital gains, you defer or eliminate tax on gains. On $50,000 in realized gains at 23.8% rate, harvesting losses saves up to $11,900 in a single year.

What is the wash-sale rule?

You cannot repurchase a substantially identical security within 30 days before or after selling at a loss. Workaround: buy a similar but different ETF to maintain market exposure.

Can unused losses carry forward?

Yes. Capital losses first offset capital gains, then up to $3,000 of ordinary income per year. Unused losses carry forward indefinitely until offset or used against future gains.

Tax-Loss Harvesting Benefit Calculator

Calculate the tax savings from harvesting investment losses to offset capital gains. Includes wash-sale rule implications and timing considerations.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How It Works

Calculate the tax savings from harvesting investment losses to offset capital gains. Includes wash-sale rule implications and timing considerations

Each component has a specific meaning:

Harvesting investment losses — The harvesting investment losses recorded for the scenario being assessed.

Note: Interpret the tax-loss harvesting result against the thresholds and context described above.

How to Use

Enter the harvesting investment losses for the scenario you are assessing. Calculate the tax savings from harvesting investment losses to offset capital gains. Includes wash-sale rule implications and timing considerations. Use the tax-loss harvesting result to inform your calculation.

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