The implementation of advanced planning strategies to: (1) reduce or eliminate capital gains tax; (2) reduce future estate tax; and (3) increase asset protection from creditors and lawsuits should be on every founder, owner, and investor’s mind. All strategies revolve around time and the amount of equity … Read More
Are My Capital Gains Recognized on the Trade or Settlement Date? There are two related and important dates when you buy or sell stock. The trade date is the date when you place an order to buy or sell. The settlement date is the date that the cash or shares … Read More
The JOBS Act, or the Jumpstart Our Business Startups Act was signed into law by President Obama on April 5, 2012. The purpose of this legislation is to lessen stiff regulation in place by the Securities and Exchange Commission on small and growing businesses. For companies with less … Read More
Qualified Small Business Stock is a phrase gaining momentum in the investment community. Although it has been around since 1993, originally signed into law by President Clinton, it has grown over the past decades in both benefits and complexity. The History Behind the Creation of Section 1202 In its … Read More
An integral element of section 1202 of the IRC, which outlines the restrictions and benefits of Qualified Small Business Stock, is §1202(d)(4) where eligible corporations are defined. The section reads: ‘‘eligible corporation’’ means any domestic corporation; except that such term shall not: include—(A) a DISC or former DISC, (B) … Read More
What Types of Businesses Qualify as Qualified Small Businesses (QSBs)? Qualified Small Business Stock (QSBS) is and the associated benefits are subject to more than a few restrictions and conditions. One of those being the actual trade of the business issuing the stock. Rather than clearly outlining the … Read More
What is a Qualified Small Business? Section 1202 of the Internal Revenue Code outlines the criteria that create a capital gains tax exclusion for holders of qualified small business stock (QSBS). A critical component of the exclusion, which may be 50, 75, or 100 percent of the total … Read More
One of the many areas of 26 U.S.C.A. § 1202 that is creating the questions from corporations looking to determine if their company qualifies for the tax exemption falls under Section 1202(e)(3)(A); which broadly states how the IRS defines excluded trades or businesses for the qualification of … Read More
One of the many areas of 26 U.S.C.A. § 1202 that is creating the questions from corporations looking to determine if their company qualifies for the tax exemption falls under Section 1202(e)(3)(A); which broadly states how the IRS defines excluded trades or businesses for the qualification of … Read More
What Exactly is Section 199-A and the Qualified Business Income Deduction (QBID)? In 2017 as part of the Tax Cuts and Jobs Act under the Trump Administration, the Corporate Tax rate was reduced from 35% to 21%. Non-corporate taxpayers now faced a higher comparative tax burden than corporations, … Read More