Tax-Loss Harvesting Calculator

Tax-loss harvesting involves selling securities at a loss to offset capital gains tax liability.

Order of Operations

1. Losses first offset gains of the same type (short-term vs short-term).
2. Remaining losses offset gains of the other type.
3. If losses exceed all gains, up to $3,000 ($1,500 MFS) can be deducted against ordinary income (wages).
4. Any remaining loss is carried forward to future years.

• Estimate tax savings from realizing losses in a down market to offset short- and long-term gains.
• Plan year-end portfolio rebalancing while maximizing the tax benefit of unrealized losses.
• Determine how much loss you can deduct against ordinary income (up to $3,000 per year).
• Calculate loss carryforward amounts that can be applied to future tax years.
• Compare harvesting scenarios to decide which losing positions to sell first.

• Losses offset same-type gains first (short-term vs. short-term), then cross-type gains.
• Excess losses above all gains can offset up to $3,000 of ordinary income ($1,500 if Married Filing Separately).
• Remaining losses carry forward indefinitely to future tax years.
• The wash sale rule (buying substantially identical securities within 30 days) is not checked here.
• State and local taxes are not included in the savings estimate.
• This tool provides estimates for educational purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation.

• IRS Topic No. 409 - Capital Gains and Losses
• IRS Publication 550 - Investment Income and Expenses
• IRC Section 1091 - Loss from Wash Sales of Stock or Securities
• IRS Schedule D Instructions - Capital Gains and Losses
• IRS Form 8949 Instructions - Sales and Dispositions of Capital Assets

Tax laws change frequently. Always verify current rates and thresholds on IRS.gov before making financial decisions.