Tax-Loss Harvesting Estimator.
Turn your portfolio losers into tax assets. Calculate exactly how much you could save on this year's tax bill by harvesting losses before December 31st.
Tax-Loss Harvesting Estimator
Calculate your potential tax savings from realizing investment losses.
1. Your Income Bracket
Your marginal tax bracket determines the value of ordinary income deductions.
2. Your Gains & Losses
Losses first offset equivalent gains. Remaining losses can offset up to $3,000 of ordinary income.
Harvesting Losses...
Estimated Tax Impact
Your Savings Summary
Total Estimated Tax Savings
$0
Current Year Benefit
Wash-Sale Alert
Avoid "substantially identical" purchases within 30 days of sale.
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How Tax-Loss Harvesting Works
The Basic Math
When you sell an investment for less than you paid for it, you realize a capital loss. The IRS allows you to use these losses to offset capital gains you've realized elsewhere in your portfolio.
If your total losses exceed your total gains, you can use up to $3,000 of the remaining loss to offset your ordinary income (like your salary).
Strategic Value
Because ordinary income is taxed at a much higher marginal rate (up to 37%) than long-term capital gains (15% or 20%), this $3,000 deduction is extremely valuable.
Any losses beyond the $3,000 limit roll over indefinitely to future tax years, creating a "tax asset" that reduces your future liability.
Crucial Warning: The Wash-Sale Rule
To claim a tax loss, you cannot buy a "substantially identical" security within 30 days before or after the sale. If you do, the IRS considers it a "wash sale" and disallows the loss deduction immediately. You must wait 31 days or buy a non-identical asset (like moving from an S&P 500 fund to a Total Stock Market fund).
Automate Your Tax Savings
Wealthfront's automated tax-loss harvesting runs daily, historically generating enough tax savings to cover its fee several times over for many clients.
Partner: Wealthfront