Nets short- and long-term gains and losses, applies the $3,000 limit, and carries the rest forward by character
One command in the Planning pack, available in the CLI, as an MCP tool and as a JavaScript import: planning capital-losses.
What it needs, and why
Every input is checked before anything is calculated. shortTermLosses is required; the rest refine the answer.
| Input | Required | The question it asks | Why it matters |
|---|---|---|---|
shortTermLosses | yes | What are the year’s short- and long-term realized gains and losses, and any carryover from last year? | Netting happens within each term before the terms offset each other. |
filingStatus | optional | Are they married filing separately? | The deduction limit is $1,500 instead of $3,000 when filing separately. |
taxableIncome | optional | What is taxable income for the year? | If taxable income is negative, part of the deduction goes unused and carries forward. |
Requests it answers
- “how much of this loss can they deduct”
- “what carries over to next year”
- “net my gains and losses”
An agent with this pack loaded picks the command from phrasing like that, asks for whatever input is missing, and reports the figures with the method that produced them.
Limits it inherits from wealth-planning
- Bracket headroom uses only the standard deduction and ordinary-income brackets. It ignores itemized deductions, credits, capital-gain and qualified-dividend stacking, NIIT, IRMAA thresholds and state tax.
- RMDs use the prior December 31 balance. Use the Joint and Last Survivor Table instead when the sole beneficiary is a spouse more than 10 years younger.
- Monte Carlo assumes normally distributed annual returns and ignores taxes and fees.
The full pack, its other 4 commands and what it deliberately leaves alone are on the Planning page.