Explain this strategy to the taxpayer

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Reference no: EM131457153

Question: A taxpayer owns 100,000 shares of Microsoft Corporation, currently valued at $10 million. The taxpayer purchased the stock for $10 per share and thus has an unrealized gain of $9 million. The taxpayer faces a tax rate of 20% on capital gains. He has heard about a tax-deferral strategy called "shorting against the box." Explain this strategy to the taxpayer.

Reference no: EM131457153

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