# Tax Loss Harvesting MCP > The Tax Loss Harvesting Calculator MCP determines your potential tax savings by analyzing capital losses against gains. It calculates net economic benefits after reinvestment friction and checks for compliance windows in multiple jurisdictions like the USA or Germany. ## Overview - **Category:** finance - **Price:** Free - **Tags:** tax-loss-harvesting, capital-gains, usa-tax, eu-tax, financial-planning ## Description Tax loss harvesting is complex, involving specific rules about timing and jurisdiction that change constantly. This connector provides specialized tools to calculate exactly how much tax you can avoid by strategically selling assets. You use it to determine avoided taxes and net savings after factoring in reinvestment costs. Need to know if a sale triggers a wash sale rule? It checks the compliance window for you, regardless of where you are located. Plus, you can retrieve current capital gains rates based on your income band and location. When building out financial workflows with Vinkius, this MCP adds deep tax intelligence directly into your process, letting you focus on strategy instead of compliance rules. ## Tools ### evaluate_harvesting_opportunity Calculates the potential tax benefits and net economic impact of harvesting losses. ### retrieve_tax_rate_by_jurisdiction Gets the correct capital gains percentage based on your location and income bracket. ### get_wash_sale_window Determines the regulatory period for wash sale compliance in a given country. ## Prompt Examples **Prompt:** ``` Calculate my tax savings if I have a loss of $5000 with a 15% tax rate and $50 in fees. ``` **Response:** ``` The total avoided tax is $750.00, and your net savings after the $50.00 friction cost is $700.00. ``` **Prompt:** ``` What is the wash sale window in Germany? ``` **Response:** ``` The wash sale window for Germany is 0 days. ``` **Prompt:** ``` What capital gains rate applies to me in the USA if I am in the medium income band? ``` **Response:** ``` The applicable capital gains tax rate for the medium income band in the USA is 15%. ``` ## Capabilities ### Assess Potential Tax Savings Determines the net economic benefit and avoided taxes from harvesting capital losses. ### Check Sale Compliance Windows Finds the specific regulatory period required to avoid a wash sale violation in your chosen country. ### Look Up Tax Rates Retrieves the current applicable capital gains tax percentage based on both jurisdiction and income bracket. ## Use Cases ### Rebalancing a Portfolio After Gains A client sold several appreciated stocks and needs to know how much they can safely sell now. They use `evaluate_harvesting_opportunity` to project tax savings, then use `retrieve_tax_rate_by_jurisdiction` to confirm the rate for their state before finalizing the trades. ### Cross-Border Investment Review An advisor is moving a client from the US to Germany. They first use `get_wash_sale_window` to understand the German rules, then check rates with `retrieve_tax_rate_by_jurisdiction` to plan assets for their new tax environment. ### Post-Loss Strategy Check A client has a large loss event. They input the details into `evaluate_harvesting_opportunity`. The tool immediately calculates the avoided taxes, letting them know exactly what they can save and how much capital remains after fees. ## Benefits - Avoid guesswork on tax planning. By using `retrieve_tax_rate_by_jurisdiction`, you immediately get the current capital gains percentage for any location and income band. - Stay compliant with international rules. The `get_wash_sale_window` tool checks specific regulatory periods, so you never risk an accidental wash sale violation. - See the true bottom line. Running `evaluate_harvesting_opportunity` gives you a net savings figure, accounting for reinvestment costs and fees. - Plan globally without limitations. You can check compliance windows in different countries—like comparing USA vs. German rules—from one place. - Speed up advisory work. Instead of manually pulling rates from multiple tax code websites, this MCP delivers the necessary rate instantly. ## How It Works The bottom line is you get an accurate financial projection of your tax optimization potential for multiple locations. 1. First, you specify your location (jurisdiction) and the details of your losses or gains. 2. Next, it calculates the applicable capital gains tax rate for that area and checks if any sales fall into a regulatory wash sale period. 3. Finally, the MCP provides a net savings calculation, showing avoided taxes minus any reinvestment friction costs. ## Frequently Asked Questions **How does the Tax Loss Harvesting Calculator use `evaluate_harvesting_opportunity`?** It calculates your potential tax benefits and net economic impact. You input your losses and fees, and it spits out the total avoided taxes minus any reinvestment friction cost. **What does `get_wash_sale_window` tell me?** This tool determines the specific regulatory window for wash sale compliance. It tells you if a sale is allowed right now based on your chosen jurisdiction. **Do I need to use `retrieve_tax_rate_by_jurisdiction` first?** Yes, always. You must confirm the correct capital gains rate for both your location and income band before calculating any tax savings or planning a harvest. **Can I check multiple countries in one go using Tax Loss Harvesting Calculator?** The MCP is designed to handle comparisons. You can use the jurisdiction tools to compare rules between areas like the USA and Germany efficiently. **When calculating losses, how does `evaluate_harvesting_opportunity` account for transaction fees?** The tool requires you to input any associated fees. It automatically factors these costs into the calculation, giving you the net savings figure after commissions or other friction costs. **If I check a country using `get_wash_sale_window` that is outside its supported regions, what happens?** It returns an explicit error detailing unsupported geography. You must use the tool only for jurisdictions listed in its documentation; it won't guess or provide approximations. **Does `retrieve_tax_rate_by_jurisdiction` need my exact income figures to work?** No, you just need your jurisdiction and an approximate income band. This is enough information for the tool to retrieve the applicable capital gains rate range. **What if I have a complex tax situation that crosses multiple state lines when running `evaluate_harvesting_opportunity`?** The MCP handles single-jurisdiction calculations. For complicated, multi-state scenarios, you'll need to run separate calculations for each relevant jurisdiction and sum the results yourself. **How do I calculate my potential tax savings?** Use the `evaluate_harvesting_opportunity` tool by providing your current positions, the applicable tax rate, and any reinvestment friction costs. **What is the wash sale rule window for the USA?** For the USA, the `get_wash_sale_window` tool confirms a 30-day period surrounding the transaction where you must avoid repurchasing substantially identical securities. **Can I retrieve tax rates for European countries?** Yes, use `retrieve_tax_rate_by_jurisdiction` to get the flat capital gains rate for supported EU nations.