Capital Loss Carryforward Tax Saver
Put your capital loss carryforward to work before year-end. Pair your available losses with expected gains to see how much income you can shield, the tax dollars avoided, and the balance you will carry into future years at your assumed capital gains rate.
Educational only. Confirm your tax rate and eligibility for loss application with a qualified tax professional.
Examples
- $15,000 of losses against $20,000 of gains at a 15% rate ⇒ Sheltered gains: $15,000.00 USD • Federal tax saved at 15.00%: $2,250.00 USD • Remaining loss carryforward: $0.00 USD • Taxable gains left this year: $5,000.00 USD.
- $8,000 of losses against $5,000 of gains at a 18% rate ⇒ Sheltered gains: $5,000.00 USD • Federal tax saved at 18.00%: $900.00 USD • Remaining loss carryforward: $3,000.00 USD • Taxable gains left this year: $0.00 USD.
FAQ
Does this include the $3,000 ordinary income offset?
No. It focuses on offsetting capital gains. Ordinary income offsets and wash-sale adjustments are excluded for simplicity.
What tax rate should I use?
Use your marginal long-term or short-term capital gains rate based on the type of gain you expect. The default is 15.00% for long-term gains.
Will unused loss balance compound?
Loss carryforwards do not compound; they simply roll into the next tax year until exhausted or applied to gains.
Additional Information
- Result unit: USD for sheltered gains, tax saved, remaining loss balance, and any taxable gains still exposed.
- Defaults to a 15.00% federal capital gains rate when no rate is supplied.
- Carries losses forward indefinitely; does not apply the $3,000 ordinary income offset cap.