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Has anyone invested in Specialized Small Business Investment Companies (SSBIC) or purchased Common Stock in an attempt to defer short term capital gains? If yes, can you explain how I can benefit from using this method?

How can I purchase Common Stock for Microsoft or AOL?
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We might need to know more, t901317. What do you mean by "defer short term capital gains"? You can avoid short term gains by holding investments more than a year. I don't see how a purchase, by itself, will defer anything.

You buy stocks through a stock broker.
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If you look in your tax manual (page D-4 of the IRS 1998 1040 tax manual) under short term capital gains, it references two methods that one may use to Defer the payment of "Short Term" capital gains. One of the methods is to purchase common stock within 60 days of selling a security which will be subject to short term capital gains. I am simply looking for a definition of common stocks and to know if I can purchase them from my broker. In addition has anyone used either of the two methods discussed in my first note, if yes please provide me with some insight
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[[Has anyone invested in Specialized Small Business Investment Companies
(SSBIC) or purchased Common Stock in an attempt to defer short term capital
gains? If yes, can you explain how I can benefit from using this method? ]]

If you are thinking that stocks on the major exchanges would qualify as SSBICs, you would be sadly mistaken. Most of these companies are small, startups...and you virtually have to know somebody that knows somebody to get in on the ground floor of a successful SSBIC.

You can read more about SSBICs in IRS Publication 550 at the IRS web site.

[[ How can I purchase Common Stock for Microsoft or AOL?]]

Through your brokerage account? I'm not trying to be a smart ass, but I guess I just don't understand your question. And, by the way, neither AOL nor Microsoft would qualify as an SSBIC.

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It seems that you have misinterpreted my post. Please take the time to read and "understand" my other post (14190) it should help to clarify my point.
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