Gain harvesting is a great year-end strategy that could potentially save the taxpayer substantial amounts of capital gains tax. Robert Keebler's Excel-based Gain Harvesting Calculator is a tool that allows practitioners to quickly see what the return on investment of gain harvesting will be depending on the combination of the following variables:
• The time period between the gain harvesting and the subsequent sale;
• Tax rate in the current year versus the tax rate in the year the asset will be sold;
• The asset’s growth rate; and
• Any state tax rate.