then taking a realized $200 loss on the sale of the stock for the drop from $1,000 to $800 hardly seems remotely noteworthy. It's the same way everyone else is treated. He ultimately has a tax liability for the realized gain from $6.25 to $800 which is exactly how it should work. Plus his original gain was a tax liability that was all owed at the time. His realized loss can only be used to offset future gains not a refund of the taxes he already paid on the unrealized gain.

That article was a mess and was written by someone who doesn't remotely understand the tax code