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Yes, speechboy, you do know the answer, and it is the answer you don't want to hear. You will owe tax on the $1500 gain. But look on the bright side. If AOL goes down to 50, then you'll have a big loss to balance against the gain, and the tax will be wiped out when you sell at 50. (Provided, of course, AOL plummets before January 1).

I have frequently employed this method of avoiding capital gains taxes.
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