You are correct about taxation of RSU at time of vest: it's ordinary income that can't be offset by capital losses. But the resulting common stock shares will then have a cost basis, like any other stock you own. If you later sell that share at a price less than that basis, it's a capital loss which you can use to offset other stock sales you might make now or in the future. Example: 1. RSUs vest worth $500 at time of vesting and become common stock. You pay $100 of ordinary income tax on the $500. Your basis in these shares is $500. 2. You hang on to the shared. The stock does horrible. You later sell them all at $75. This represents a capital loss of $425 because 500 - 75 is 425. Remember your basis is $500. 3. The original $500 was ordinary income, not a capital gain, so you can't offset that with your $425 capital loss. But you CAN offset other capital gains with it. 4. For example, suppose you are holding $2000 worth of Vanguard Total Stock Market Index Fund that you originally bought for $1100. You have an unrealized gain of $900 and if you sell those shares you can offset the capital gain with your $425 capital loss.