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Tax-loss harvesting calculator

Tax-loss harvesting is abbreviated as TLH below.

Initial investment [$]

Current value of investment [$]

Sell now tax rate [%]

Estimated gain (now until final sale) [%]

Estimated tax rate for final sale [%]

Tax savings if sold now [$]

1250.00

New, TLH investment amount [$]

16250.00

Final sale amount (without TLH) [$]

30000.00

Final sale amount (with TLH) [$]

32500.00

Final tax bill (without TLH) [$]

1500.00

Final tax bill (with TLH) [$]

2437.50

Cash in hand after tax (without TLH) [$]

28500.00

Cash in hand after tax (with TLH) [$]

30062.50

TLH net benefit [$]

1562.50

Description

This calculator estimates potential benefits of tax-loss harvesting (TLH). For more information, see our article on tax-loss harvesting or checkout Tom Wheelwright's book Tax-free Wealth. Consult a tax advisor for more details, including the wash-sale rule and other tax impacts.

The information below may be useful when using this calculator.

  • An asset sold within a year of purchase is typically taxed as ordinary income (23% on average) and called a short-term gain/loss. This may be about twice the tax rate you pay on long-term sales, and is 10 to 37% at the time of this writing, depending on your tax bracket.
  • An asset held longer than a year is typically subject to long-term capital gains taxes, typically 15%. These are 0 to 20% at the time of this writing—often roughly half the short-term rate.