Tax Loss Harvesting Calculator

Calculate tax savings from capital loss harvesting strategies for 2025

Portfolio Information

Include both short-term and long-term gains
Unrealized losses you can harvest
Used to determine tax brackets
Unused losses from previous years

Tax Loss Harvesting Results

Total Gains Before Harvesting: $0
Losses to Harvest: $0
Net Gains After Harvesting: $0
Ordinary Income Offset: $0
Total Tax Savings: $0
New Loss Carryforward: $0

Tax Savings Breakdown

Short-term Gain Offset: $0
Long-term Gain Offset: $0
Ordinary Income Savings: $0
NIIT Savings: $0

Optimization Strategy

Calculate to see personalized recommendations

Tax Loss Harvesting Rules

  • Losses offset gains of the same type first
  • Excess short-term losses offset long-term gains
  • Excess long-term losses offset short-term gains
  • Up to $3,000 can offset ordinary income annually
  • Unused losses carry forward indefinitely

Wash Sale Rule

  • Cannot buy "substantially identical" security
  • 30-day period before and after sale
  • Applies to spouse and controlled entities
  • Loss is disallowed, basis is adjusted
  • Consider ETF alternatives to avoid wash sales

Harvesting Strategies

  • Harvest short-term losses first (higher tax rate)
  • Consider future tax rate changes
  • Balance portfolio rebalancing with tax benefits
  • Use similar but not identical replacements
  • Time harvesting near year-end

Important Considerations

  • Transaction costs may reduce benefits
  • Market timing risks when out of position
  • State tax implications may vary
  • Impact on asset allocation strategy
  • Record keeping for basis adjustments

⚠️ Wash Sale Rule Warning

Be careful not to violate the wash sale rule when implementing tax loss harvesting. Purchasing the same or substantially identical security within 30 days before or after the sale will disallow the loss deduction. Consider using similar but different ETFs or mutual funds to maintain market exposure while avoiding wash sale violations.

Important Disclaimer

This calculator is for educational purposes only and should not be considered as professional tax or investment advice. Tax loss harvesting involves complex rules including wash sale provisions, basis adjustments, and timing considerations. The strategy should be evaluated in the context of your overall investment plan and tax situation. Always consult with qualified tax and investment professionals before implementing tax loss harvesting strategies. The IRS provides detailed guidance in Publication 550 and related materials.