tax-loss-harvesting

Name: tax-loss-harvesting
Author: agiprolabs

235stars53forks

How to install tax-loss-harvesting?

agiprolabs/claude-trading-skills/tax-loss-harvesting

$npx -y skills add agiprolabs/claude-trading-skills --skill tax-loss-harvesting

Installs into the current project.

Summary

Tax-loss harvesting opportunity identification, scoring, and planning with wash sale compliance and annual carryforward tracking

Files · 1

View on GitHub

SKILL.md

1	# Tax-Loss Harvesting
2
3	Identify, score, and plan tax-loss harvesting (TLH) opportunities across a crypto portfolio. This skill covers unrealized-loss ranking, net-benefit calculation, wash sale compliance, annual loss carryforward tracking, and year-end "use it or lose it" strategies.
4
5	> Disclaimer: This skill provides informational analysis only. It is NOT tax advice. Tax rules vary by jurisdiction and change frequently. Consult a qualified tax professional before making any tax-related trading decisions.
6
7	## How Tax-Loss Harvesting Works
8
9	Tax-loss harvesting is the practice of intentionally realizing investment losses to offset realized capital gains, thereby reducing your current-year tax liability.
10
11	### Core Mechanism
12
13	1. Identify positions with unrealized losses in your portfolio.
14	2. Sell those positions to realize the loss.
15	3. Offset realized gains with the harvested loss, reducing taxable income.
16	4. Optionally re-enter a similar (but not "substantially identical") position to maintain market exposure.
17
18	### Short-Term vs Long-Term
19
20	\| Holding Period \| Classification \| Typical Tax Rate \|
21	\|---------------\|---------------\|-----------------\|
22	\| < 1 year \| Short-term capital gain/loss \| Ordinary income rate \|
23	\| >= 1 year \| Long-term capital gain/loss \| Preferential rate (0-20%) \|
24
25	Short-term losses first offset short-term gains; long-term losses first offset long-term gains. Remaining net losses cross over to offset the other category.
26
27	### Annual Loss Deduction Limit
28
29	If total net losses exceed total gains, the excess is deductible against ordinary income up to $3,000 per year ($1,500 if married filing separately). Any remaining loss carries forward indefinitely to future tax years.
30
31	## Ranking Unrealized Losses
32
33	Not all unrealized losses are equally valuable to harvest. This skill scores each opportunity on four dimensions:
34
35	### 1. Loss Magnitude
36
37	Larger dollar losses provide more tax savings. The raw loss is the difference between current market value and cost basis.
38
39	```
40	unrealized_loss = current_value - cost_basis # negative when loss
41	tax_savings = abs(unrealized_loss) * marginal_tax_rate
42	```
43
44	### 2. Days Until Long-Term Threshold
45
46	A position approaching the 1-year holding mark deserves special consideration:
47	- If close to crossing into long-term territory, harvesting now locks in a short-term loss (offsets higher-taxed short-term gains).
48	- If already long-term, the loss offsets long-term gains (lower tax rate benefit).
49
50	```
51	days_held = (today - acquisition_date).days
52	days_to_long_term = max(0, 365 - days_held)
53	```
54
55	Positions with fewer days remaining until long-term are more urgent to evaluate because once they cross 365 days, a short-term loss becomes a less-valuable long-term loss.
56
57	### 3. Wash Sale Risk (Correlation Score)
58
59	The IRS wash sale rule prohibits claiming a loss if you buy a "substantially identical" security within 30 days before or after the sale. In crypto, the exact application is evolving, but prudent planning avoids re-entering the same token within the 61-day wash sale window (30 days before + sale day + 30 days after).
60
61	Correlation scoring: If you hold (or plan to re-enter) a position that is highly correlated with the harvested asset, wash sale risk increases. Score this as:
62
63	```
64	wash_sale_risk = 1.0 # if same token re-entry planned within 30 days
65	wash_sale_risk = correlation_coefficient # if correlated substitute held
66	wash_sale_risk = 0.0 # if no re-entry or uncorrelated substitute
67	```
68
69	Higher wash sale risk reduces the effective score of the opportunity.
70
71	### 4. Available Gains to Offset
72
73	A harvested loss is only immediately useful if there are realized gains to offset. Score opportunities higher when:
74	- There are matching-type gains (short-term loss vs short-term gain).
75	- The loss amount does not greatly exceed available gains (diminishing marginal benefit beyond the $3K deduction cap).
76
77	```
78	offset_efficiency = min(1.0, available_matching_gains / abs(unrealized_loss))
79	```
80
81	### Composite Score
82
83	```python
84	def tlh_score(
85	unrealized_loss: float,
86	days_to_long_term: int,
87	wash_sale_risk: float,
88	offset_efficiency: float,
89	weights: dict \| None = None,
90	) -> float:
91	w = weights or {
92	"magnitude": 0.35,
93	"urgency": 0.25,
94	"wash_safety": 0.20,
95	"offset_match": 0.20,
96	}
97	magnitude_score = min(abs(unrealized_loss) / 10_000, 1.0)
98	urgency_score = max(0, 1.0 - days_to_long_term / 365)
99	wash_safety_score = 1.0 - wash_sale_risk
100	return (
101	w["magnitude"] * magnitude_score
102	+ w["urgency"] * urgency_score
103	+ w["wash_safety"] * wash_safety_score
104	+ w["offset_match"] * offset_efficiency
105	)
106	```
107
108	## Net Benefit Calcula

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tax-loss-harvesting

235stars53forks

View on GitHub

How to install tax-loss-harvesting?

agiprolabs/claude-trading-skills/tax-loss-harvesting

$npx -y skills add agiprolabs/claude-trading-skills --skill tax-loss-harvesting

Installs into the current project.

Summary

Tax-loss harvesting opportunity identification, scoring, and planning with wash sale compliance and annual carryforward tracking

Files · 1

View on GitHub

SKILL.md

1	# Tax-Loss Harvesting
2
3	Identify, score, and plan tax-loss harvesting (TLH) opportunities across a crypto portfolio. This skill covers unrealized-loss ranking, net-benefit calculation, wash sale compliance, annual loss carryforward tracking, and year-end "use it or lose it" strategies.
4
5	> Disclaimer: This skill provides informational analysis only. It is NOT tax advice. Tax rules vary by jurisdiction and change frequently. Consult a qualified tax professional before making any tax-related trading decisions.
6
7	## How Tax-Loss Harvesting Works
8
9	Tax-loss harvesting is the practice of intentionally realizing investment losses to offset realized capital gains, thereby reducing your current-year tax liability.
10
11	### Core Mechanism
12
13	1. Identify positions with unrealized losses in your portfolio.
14	2. Sell those positions to realize the loss.
15	3. Offset realized gains with the harvested loss, reducing taxable income.
16	4. Optionally re-enter a similar (but not "substantially identical") position to maintain market exposure.
17
18	### Short-Term vs Long-Term
19
20	\| Holding Period \| Classification \| Typical Tax Rate \|
21	\|---------------\|---------------\|-----------------\|
22	\| < 1 year \| Short-term capital gain/loss \| Ordinary income rate \|
23	\| >= 1 year \| Long-term capital gain/loss \| Preferential rate (0-20%) \|
24
25	Short-term losses first offset short-term gains; long-term losses first offset long-term gains. Remaining net losses cross over to offset the other category.
26
27	### Annual Loss Deduction Limit
28
29	If total net losses exceed total gains, the excess is deductible against ordinary income up to $3,000 per year ($1,500 if married filing separately). Any remaining loss carries forward indefinitely to future tax years.
30
31	## Ranking Unrealized Losses
32
33	Not all unrealized losses are equally valuable to harvest. This skill scores each opportunity on four dimensions:
34
35	### 1. Loss Magnitude
36
37	Larger dollar losses provide more tax savings. The raw loss is the difference between current market value and cost basis.
38
39	```
40	unrealized_loss = current_value - cost_basis # negative when loss
41	tax_savings = abs(unrealized_loss) * marginal_tax_rate
42	```
43
44	### 2. Days Until Long-Term Threshold
45
46	A position approaching the 1-year holding mark deserves special consideration:
47	- If close to crossing into long-term territory, harvesting now locks in a short-term loss (offsets higher-taxed short-term gains).
48	- If already long-term, the loss offsets long-term gains (lower tax rate benefit).
49
50	```
51	days_held = (today - acquisition_date).days
52	days_to_long_term = max(0, 365 - days_held)
53	```
54
55	Positions with fewer days remaining until long-term are more urgent to evaluate because once they cross 365 days, a short-term loss becomes a less-valuable long-term loss.
56
57	### 3. Wash Sale Risk (Correlation Score)
58
59	The IRS wash sale rule prohibits claiming a loss if you buy a "substantially identical" security within 30 days before or after the sale. In crypto, the exact application is evolving, but prudent planning avoids re-entering the same token within the 61-day wash sale window (30 days before + sale day + 30 days after).
60
61	Correlation scoring: If you hold (or plan to re-enter) a position that is highly correlated with the harvested asset, wash sale risk increases. Score this as:
62
63	```
64	wash_sale_risk = 1.0 # if same token re-entry planned within 30 days
65	wash_sale_risk = correlation_coefficient # if correlated substitute held
66	wash_sale_risk = 0.0 # if no re-entry or uncorrelated substitute
67	```
68
69	Higher wash sale risk reduces the effective score of the opportunity.
70
71	### 4. Available Gains to Offset
72
73	A harvested loss is only immediately useful if there are realized gains to offset. Score opportunities higher when:
74	- There are matching-type gains (short-term loss vs short-term gain).
75	- The loss amount does not greatly exceed available gains (diminishing marginal benefit beyond the $3K deduction cap).
76
77	```
78	offset_efficiency = min(1.0, available_matching_gains / abs(unrealized_loss))
79	```
80
81	### Composite Score
82
83	```python
84	def tlh_score(
85	unrealized_loss: float,
86	days_to_long_term: int,
87	wash_sale_risk: float,
88	offset_efficiency: float,
89	weights: dict \| None = None,
90	) -> float:
91	w = weights or {
92	"magnitude": 0.35,
93	"urgency": 0.25,
94	"wash_safety": 0.20,
95	"offset_match": 0.20,
96	}
97	magnitude_score = min(abs(unrealized_loss) / 10_000, 1.0)
98	urgency_score = max(0, 1.0 - days_to_long_term / 365)
99	wash_safety_score = 1.0 - wash_sale_risk
100	return (
101	w["magnitude"] * magnitude_score
102	+ w["urgency"] * urgency_score
103	+ w["wash_safety"] * wash_safety_score
104	+ w["offset_match"] * offset_efficiency
105	)
106	```
107
108	## Net Benefit Calcula

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