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Any comments on the following situation are very welcome!

Exercised an ISO on 1/2/98 for stock XYZ with an exercise price of $4.00 and a market price of $34. This creates an AMT item for the $30 difference - taxable at 26% (lets not worry about the AMT exemption for now).

Coming up on the end of the year now & the market price is at $24. If I sell now, I have a gain of $20 - at my marginal regular tax rate of 28%. This looks like a better tax situation than holding through the end of the year and incurring and paying the AMT tax.

I want to hold long term. If I sell and then immediately buy back -- well it 'feels' like a wash sale - is it?

What have I missed? Thanks in advance!

- MTBnd
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