Advisory Notice: This terminal is an educational simulation engine. Outputs are mathematical projections and not professional financial or tax advice.
Capital Positions
Tax Bracket Brackets (%)
The absolute tax reduction achieved by harvesting losses.
Your remaining capital gains tax obligation to IRS.
Gains that are merely paper tracking over a 3% inflation baseline.
📊 IRS Netting Protocols
$10,000
Taxed at ordinary rate (24%)
$23,000
Taxed at investment rate (15%)
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Tax Loss Harvesting Protocols
Tax loss harvesting allows investors to legally offset realized investment gains with realized investment losses. Short-term losses pair against short-term gains, while long-term losses pair against long-term gains. If excess losses remain, they can cross over categories or be used to offset up to $3,000 of ordinary wage income annually.
Beware the Wash-Sale Rule
To successfully book tax savings, you must avoid the IRS wash-sale trap. This rule disqualifies a tax deduction if you buy a "substantially identical" security within 30 days before or after selling the original asset at a loss. Strategic optimization requires picking secondary proxy indexes to remain exposed to the market safely.
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Institutional Disclosure: Tax loss harvesting simulations replicate statutory IRS netting logic. They do not simulate specialized state tax variations, wash-sale disqualifications, or asset cost basis modifications. The Newston Terminal does not provide legal, CPA, or certified tax advisory services. All filings should be reviewed by a licensed tax professional.