Selling losers to bank losses can offset gains and some ordinary income. See the tax it saves.
Estimates the tax savings from harvesting investment losses against capital gains and up to 3,000 of ordinary income.
Harvested losses first offset your realized capital gains, saving tax at your capital gains rate. If losses exceed gains, up to 3,000 of the excess can offset ordinary income each year, saving tax at your higher ordinary rate. Any remaining loss is not wasted; it carries forward to future years to offset later gains or income.
The IRS wash-sale rule disallows the loss if you buy the same or a substantially identical security within 30 days before or after the sale. To keep the deduction, wait out the window or move to a similar but not identical holding. This tool estimates the tax benefit only and is educational, not tax advice, so confirm specifics with your tax professional.
It disallows a loss deduction if you repurchase the same or substantially identical security within 30 days before or after selling. The disallowed loss is added to the basis of the replacement shares instead.
Up to 3,000 per year (1,500 if married filing separately) after gains are offset. Anything beyond that carries forward indefinitely.
No, unused capital losses carry forward to future tax years until fully used. They keep their short-term or long-term character.
See the exact formula and a worked example on our methodology page.