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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, weather or not can I purchase
Common Stock for Microsoft or AOL from my
broker.

In addition 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, please explain how I can
benefit from using one of the methods described
above?


In my first reply I did not realize that the second paragraph related to the first. Sorry.

This is section 1202 stock.

The purchased co must have assets of less than $50,000,000. I think you can skip Microsoft and AOL.

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