Horizon: 20.00
1.00 50.00Unrealized Gain In Portfolio: 35.0%
0% 99%Nominal Risk-free Rate: 1.5%
0% 10%Current Capital Gains Tax Rate: 30.0%
0% 99%Nominal Expected Asset Return: 6.0%
0% 25%Future Capital Gains Tax Rate: 50.0%
0% 99%Risky Asset Volatility: 18.0%
1% 100%Probability of Taxable Realization: 100.0%
0% 100%CRRA Risk Aversion: 2.00
1.00 5.00Future Dividend Tax Rate: 50.0%
0% 100%Dividend Yield: 2.0%
0% 25%Future Interest Tax Rate: 50.0%
0% 100%Current risk-asset allocation: 70.0%
0% 100%Realized loss value (%): 0.0%
0% 100%Realized Loss Decay Time: 20.00
1.00 50.00Early Realization Calculator
When capital gains rates are expected to go up, is it better to realize gains and pay tax now, or defer and pay tax at a higher rate in the future? The answer depends on many variables, with horizon often being the most critical. This calculator jointly solves for the amount of gain to realize today, and the allocation to the risky asset going forward, which maximize the investor’s risk-adjusted wealth. Please don’t hesitate to be in touch with any questions or suggestions.
This calculator is for information purposes only, and should not be construed as tax advice.

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