[jeffbush]

I'm not sure your statement about "capital loss" is correct. I know people who have gotten burned by this. They still ended up writing a big tax check at the end of the year despite having worthless shares. The tax code is definitely not fair.

EDIT: other people have pointed out that capital loss is capped, which makes sense. So while it may be true that you can claim capital loss, my understanding has been that it never compensates for the tax you're already liable for when you exercised.