Realized vs. unrealized a paper (unrealized) loss does nothing for taxes until you sell and realize it. Where it's taught Tax-Loss Harvesting: Turning a Loser Into a Tax Break Try it with a calculator Tax Loss Harvest Calculator Appears in 1 other lesson Capital Gains: Why Holding On (and Trading Less) Beats the Tax Related terms $3,000 ordinary-income offsetCapital loss / gainCarry-forwardCost basisStep-up in basisWash sale