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//// Financial · Investing

Tax Loss Harvesting Calculator

Sell losers to offset winners. See IRS netting rules applied, total tax saved, up to $3,000 ordinary income deduction (IRC §1211), carry-forward, and net benefit after transaction costs.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Harvest — worth it

Harvesting saves $1,260 in taxes this year — a net benefit of $1,240 after transaction costs.

Capital Gains

Losses Available to Harvest

Tax Rates & Costs

Marginal Income Tax Rate (for short-term gains)
Long-Term Capital Gains Rate
Tax Without Harvesting
$2,300
22.0% on gains
Tax With Harvesting
$1,040
After netting losses
Tax Saved
$1,260
This tax year
Net Benefit
$1,240
After transaction costs

IRS Netting Rules — 3-Step Walkthrough

StepActionBeforeLoss UsedAfter
1aSTCL offsets STCG$5,000−$3,000$2,000
1bExcess STCL (unused)$0$0
2aLTCL offsets LTCG$8,000−$4,000$4,000
2bExcess LTCL (unused)$0$0
3Cross-net excess lossesST: $2,000 / LT: $4,000STCL→LT / LTCL→STST: $2,000 / LT: $4,000

IRS Publication 550 — Investment Income and Expenses. Same-type netting first, then cross-type.

Wash Sale Rule (IRC §1091)

Wash sale rule: do not repurchase the same or substantially identical security within 30 days before or after the sale. Consider a similar (not identical) ETF as a replacement to maintain market exposure.