Strategy #0000000155 · Hedging and risk management
Tax-loss harvesting after-tax scenario
Enter realised loss, applicable tax rate, replacement tracking difference and estimated deferred tax drag.
Tax-loss harvesting realises an investment loss to offset eligible capital gains or other income where rules allow, while a different but related replacement holding maintains market exposure. Results depend on the investor’s tax rate, eligible gains, holding period, execution costs and applicable wash-sale rules. A lower replacement cost basis may defer rather than eliminate tax. This simple scenario compares user-entered current tax savings and drags.
Not tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined.
Three ways in
Understand the story. Then inspect the risk.
Start with a familiar situation, check the payoff, then test how the numbers change.
The idea · in two minutes
How much of the current tax offset remains after replacement-asset tracking costs and estimated future tax drag?
Tax-loss harvesting realises an investment loss to offset eligible capital gains or other income where rules allow, while a different but related replacement holding maintains market exposure. Results depend on the investor’s tax rate, eligible gains, holding period, execution costs and applicable wash-sale rules. A lower replacement cost basis may defer rather than eliminate tax. This simple scenario compares user-entered current tax savings and drags.
Enter realised loss, applicable tax rate, replacement tracking difference and estimated deferred tax drag.
Not tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined.
- Entered assumptionsEnter realised loss, applicable tax rate, replacement tracking difference and estimated deferred tax drag.
- Model outputNot tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined.
Illustrative research examples only. They are not live signals or a recommendation.
The mechanics · payoff and exposure
Current tax offset=Realised loss imes Marginal rate,quad Net benefit=Reinvested offset-Tracking cost-Future tax drag
The current tax offset is counted only if reinvested; tracking cost and future tax drag are independent inputs.
Greeks: the directional intuition
- 模型
- Measures sensitivity to implied volatility.
- 合約／稅務
- Measures sensitivity to implied volatility.
- 執行
- Measures sensitivity to implied volatility.
Current tax offset=Realised loss imes Marginal rate,quad Net benefit=Reinvested offset-Tracking cost-Future tax drag
Practical context · published observations
Tax-loss harvesting after-tax scenario: read the record with its caveats.
The chart uses the published figures or explicitly labelled study inputs below. A historical index or model replay is not the same as an investor’s realised account return.
Not tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined. Source ↗ · Methodology ↗
Change assumptions and inspect the scenario
Inputs illustrate the strategy mechanics; they are not live quotes, forecasts or investment advice.
Variants · same family, different risk levers
Models, tax rules, contracts and implementation can change results.
Compare relevant mechanisms and execution assumptions.
| Related strategy | Relationship | What changes | New cost or risk |
|---|---|---|---|
| Base scenario | Manual inputs | Tax-loss harvesting realises an investment loss to offset eligible capital gains or other income where rules allow, while a different but related replacement holding maintains market exposure. Results depend on the investor’s tax rate, eligible gains, holding period, execution costs and applicable wash-sale rules. A lower replacement cost basis may defer rather than eliminate tax. This simple scenario compares user-entered current tax savings and drags. | Not tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined. |
| Conservative version | Stress assumptions | Raise costs and reduce eligible/executable amounts to stress the result. | Scenario benefit may shrink. |
| Validation version | Data review | Check inputs against consistent quotes, settlement rules and personal eligibility. | Needs representative data and professional review. |
Not tax advice; eligibility, wash-sale rules, jurisdiction and future disposal timing are not determined.
Read beyond the summary
References
Primary sources and research used to describe the strategy and its limits.