Tax-Loss Harvest Breakeven

Determine how much tax savings your harvested capital loss generates after transaction costs and any wash-sale disallowance. Enter the loss amount and your marginal capital gains tax rate to see usable loss, tax savings, the break-even fee ceiling, and your net benefit.

Dollar amount of the capital loss you plan to harvest this tax year.
Combined federal, state, and surtax rate applied to your capital gains.
Commissions, bid/ask slippage, and any fees tied to the harvest. Defaults to $0.00 when blank.
Portion of the loss disallowed under wash-sale rules. Defaults to 0% if empty.

Informational only; verify tax outcomes with your advisor and confirm wash-sale exposure before executing trades.

Examples

  • $5,000.00 loss, 15.00% capital gains rate, $35.00 costs, 0% disallowance ⇒ Usable loss: $5,000.00 USD | Tax savings: $750.00 USD | Net benefit: $715.00 USD | Break-even trading cost ceiling: $750.00 USD | Disallowed loss share: 0.00%.
  • $8,500.00 loss, 20.00% rate, default costs, 25% disallowed ⇒ Usable loss: $6,375.00 USD | Tax savings: $1,275.00 USD | Net benefit: $1,275.00 USD | Break-even trading cost ceiling: $1,275.00 USD | Disallowed loss share: 25.00%.

FAQ

Does the calculator account for the $3,000 ordinary income offset?

It assumes the loss reduces capital gains first. If you have no gains, the first $3,000 of usable loss can offset ordinary income and deliver savings at your ordinary rate.

How do I estimate wash-sale disallowance?

Enter the percentage of your loss tied to substantially identical repurchases within the wash-sale window so the calculator reduces the claimable loss accordingly.

What trading costs should I include?

Add commissions, bid/ask slippage, and any spreads paid to exit and re-enter positions so the net benefit reflects real friction.

Additional Information

  • Break-even trading cost equals the tax savings produced by the usable loss; fees below this level keep harvesting worthwhile.
  • Wash-sale disallowance reduces the loss you can claim this year; the disallowed portion increases the basis of the replacement shares.
  • Tax savings use your combined capital gains tax stack (federal, state, and surtaxes). Long-term rates generally differ from ordinary brackets.
  • Losses offset current-year gains first; any remaining capital loss can offset up to $3,000 of ordinary income before carrying forward.

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