Beta Tool

Tax-Loss Harvesting Decision Engine

Stop guessing. Quantify the trade-off between immediate tax savings and the risk of sitting in cash.

1. Portfolio Details

Cost Basis ($)

Current Value ($)

Tax Rate on Gains (%)Max 60%

Use Income Rate (e.g. 37%) for Short Term, Capital Rate (20%) for Long Term.

I have other Realized Gains to offset.

• Checked: Offsets gains (assumes sufficient gains to cover entire loss)

• Unchecked: Deduction capped at $3,000/year (IRS Limit)

Market Recovery Expectation (30 Days)+1%

-5%0%+10%

NET POSITIVE

$150

Projected Net Benefit

Savings cover the market move.

HIGHER NET VALUE

NET POSITIVE

+$1,050

Projected Net Benefit

+ $7,000 loss carried forward

Projected tax savings captured while staying invested in the market recovery.

Tip: When harvesting losses on individual stocks, investors often use sector ETFs to maintain exposure while avoiding wash sales.

*Assumes full liquidation of a single tax lot at the provided tax rate. Transaction costs excluded. Estimates are for educational purposes only.

I confirm I have NOT purchased this asset (or a substantially identical one) in the last 30 days, including dividend reinvestments.

If the calculator recommends a "Smart Switch," find a correlation partner to stay invested while harvesting the loss.

Don't stop at capital gains. Compare tax-free municipal bonds against taxable CDs using your exact 2026 tax bracket.

Most investors hesitate to harvest losses because they worry about selling at the bottom. This engine compares two scenarios:

Selling to Cash (The Trap): You harvest the loss but risk missing a market rebound (Cash Drag). If the market recovers faster than your tax savings, you lose money.
The Smart Switch: You harvest the loss and immediately buy a correlated asset. This captures the rebound while "banking" the tax deduction.