This is why I hate threaded headsets. Granted it would've came out if the previous owner had maintained it, though I am sure that there are some who had similar experiences with threadless headsets. Sprayed it down with PB blaster, used the heat gun but to avail, it was completely rusted on. Ended up using the dremel tool, cut it to the point where I can knock it off with my mallet. Hammer mechanics for the win!
The cut off stem
The fork