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Capital Gains Harvesting Calculator

Strategic gain harvesting optimizes lifetime tax.

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Harvest savings (rate arb)

$180,000

Current year tax

$165,000

Future year tax

$345,000

How the math works

Net gain = unrealized − offsetting. Current year tax = net × current rate. Future tax = gain × future rate. Savings = future − current.

$1.5M − $400k losses = $1.1M net × 15% = $165k now. vs $345k later. Save $180k by harvesting now.

How to Use

  1. Enter unrealized gain.
  2. Enter current year tax rate %.
  3. Enter expected future rate %.
  4. Enter offsetting losses available.
  5. Read tax savings from harvesting.

Frequently Asked Questions

When to harvest?

Low-income year (bracket below normal). Offsetting losses available. Expected higher future rate. Estate planning (step-up at death). Typical timing: retirement years with lower income, or year of net losses.

Tax-loss matching?

Realized gains offset dollar-for-dollar by realized losses (same year). LTCG gains + LTCL losses. Excess losses up to $3,000 offset ordinary income per year. Carry forward unlimited. Planning: realize gains to match available losses.

Rate arbitrage?

Current year 20% rate vs expected 25% next year: harvest now saves 5%. $1M gain × 5% = $50k savings. Requires forecasting. Most investors don't; meaningful strategy for high-net-worth with variable income.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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