Capital Gains Harvesting Calculator
This calculator helps investors estimate their potential tax savings through capital gains harvesting. It is designed for individuals aiming to optimize their investment strategies by realizing gains in a tax-efficient manner.
Calculate Your Gains
Results
Data Source and Methodology
All calculations are based on standard tax laws and financial principles. For more information, visit Ameriprise Financial.
The Formula Explained
Capital Gain = Current Value - Initial Investment
Estimated Tax = Capital Gain × (Tax Rate / 100)
Glossary of Terms
- Initial Investment: The original amount of money invested.
- Current Value: The current market value of the investment.
- Capital Gain: The profit earned from the investment.
- Estimated Tax: The tax expected to be paid on the capital gain.
Frequently Asked Questions (FAQ)
What is capital gains harvesting?
Capital gains harvesting is a strategy used to minimize taxes by selling assets at a profit and immediately repurchasing them.
How does the calculator work?
Enter your initial investment, current value, and expected tax rate. The calculator will estimate your capital gain and potential tax.
Is the calculated tax accurate?
The calculator provides an estimate based on the input data and standard tax principles. Consult a tax advisor for precise calculations.