Talk:Tax loss harvesting

In this example, you get both interest-free loan and free money from the IRS. You deducted the $1,000 loss at the 25% rate. When you sold the shares, you had $1,000 more capital gains on the $9,000 investment compared to the case without tax loss harvesting. However, you paid 15% on the capital gains. So, 15% of $1,000, which is $150, is an interest-free loan, and 10% (= 25% - 15%) of $1,000, which is $100, is free money from the IRS.

In the above example I find the $150 - interest free loan and $100 free money from IRS confusing to understand. Is it possible to make it more clear? --LazyNihilist 23:46, 23 September 2011 (EDT)