Tax Loss Harvesting Calculator
Calculate potential tax savings from selling losing positions to offset capital gains and ordinary income.
Loss Position Details
Unrealized Loss
$15000.00
Cost basis $20000.00 - Current value $5000.00
Existing Capital Gains
Tax rate: 15% (based on income level)
Tax rate: 22% (ordinary income rate)
Wash Sale Rule
Warning: Wash sale rule disallows loss if you buy the same or substantially identical security within 30 days before or after the sale.
Loss Offsetting Summary
Offsets Long-term Gains:$10000.00
Offsets Short-term Gains:$5000.00
Offsets Ordinary Income:$0.00
Carryover Loss:$0.00
Estimated Tax Savings
$2600.00
Long-term offset savings: $1500.00
Short-term offset savings: $1100.00
Ordinary income deduction savings: $0.00
Net Position After Harvesting
Net Capital Gains:$0.00
Holding Period:Long-term (over 1 year)
Key Rules
- Long-term losses offset long-term gains first, then short-term gains.
- Short-term losses offset short-term gains first, then long-term gains.
- Remaining losses can offset up to $3,000 of ordinary income per year.
- Unused losses carry forward indefinitely to future tax years.
- Wash sale: Loss disallowed if repurchasing same/similar security within 30 days.
- Long-term gains taxed at 0%, 15%, or 20% based on income bracket.
- Short-term gains taxed at ordinary income rates (10% to 37%).