Tax-loss harvest calculator
By Jude Wallis
A tax loss is basis minus proceeds when proceeds are lower. $6,000 of proceeds against $10,000 basis creates a $4,000 loss. At an entered 22 percent rate, the teaching tax value is $880.
Tax saved at the stated rate
$880.00
Realised loss $4,000.00 at 22.0 percent.
- Basis
- $10,000.00
- Loss
- $4,000.00
- Tax saved
- $880.00
Basis of the holding sold.
Amount realised on the sale.
Rate that would have applied to the cancelled income. 22 here means 0.22.
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The formula
Loss is basis minus proceeds. Multiply that loss by the entered tax rate written as a decimal.
Find the realised loss
$10,000 basis minus $6,000 proceeds is a $4,000 loss. Multiply by 22 percent for $880. How tax loss harvesting works explains the transaction context.
A smaller loss
$7,000 of proceeds against the same $10,000 basis creates a $3,000 loss. At 22 percent, its teaching tax value is $660.
Loss and tax value are different
The capital gain identity compares proceeds with basis. Tax loss harvesting uses a realised loss within tax rules. The $4,000 loss itself is not $4,000 of tax savings.
Scope of the estimate
This page applies one entered rate to one realised loss. Deduction limits, wash sale rules and interactions with other gains are separate. This is educational material, not financial advice.
Worked examples
\$4,000 loss at 22 percent
Proceeds are $6,000, basis is $10,000, and the entered rate is 22 percent. What are loss and teaching tax value?
- Loss is , so $4,000.
- Tax value is , so $880.
$6,000 proceeds against $10,000 basis creates a $4,000 loss and $880 of teaching tax value at 22 percent.
\$3,000 loss at 22 percent
Proceeds are $7,000, basis is $10,000, and the entered rate is 22 percent. What are loss and teaching tax value?
- Loss is , so $3,000.
- Tax value is , so $660.
$7,000 proceeds against $10,000 basis creates a $3,000 loss and $660 of teaching tax value at 22 percent.
Calling the loss the tax savings
The loss is the basis gap. The teaching tax value is that loss multiplied by the entered rate.
Common questions
Does the calculator apply wash sale rules?
No. This identity starts with a realised loss amount from basis and proceeds.
Is the entered rate guaranteed?
No. It is a teaching input applied to the loss.
Is this financial advice?
No. It is educational material for loss times rate arithmetic.
Keep reading
This page is educational material, not financial advice. The figures come from the formula shown and assume the inputs you enter hold for the whole term. Your own rate, fees, taxes and timing will differ, so treat the output as arithmetic to check a decision against, not as a recommendation.