It is easy to forget about the implications of state and local taxes on your income whether it is W-2 wages or capital gains on an investment. If you are an investor be sure to check out your state's tax treatment of capital gains because they could … Read More
If you are googling "states with no income" you must be either getting ready for tax season, moving to a new state, starting a business, or have a current or potential Section 1202 qualified small business stock opportunity. Am I right? Well, you've come to the right … Read More
QSBS Section 1244 was passed in 1958. It allows for losses from venture investing by taxable individuals to be deducted against ordinary income. Joe Milam, CEO of AngelSpan, Inc. has been leading efforts to update / modernize the "Impact Incentive" to at least update the levels and … Read More
If you are familiar with the definition of a qualified small business per Section 1202 there are a few nuances with Section 1244 as well as the methods of acquiring the stock. The difference between Section 1202 (not an exhaustive list) and 1244 are below: Read More
Section 1244 losses from certain small business stock allows an individual or married taxpayer to take a $50k or $100k capital loss, respectively, as an ordinary loss annually. How are Qualified Small Businesses similar and different between Sections 1202 and 1244? What is the impact on taxes with … Read More
In addition to capital gains taxes, if an individual’s income exceeds a certain threshold they will also be subject to a Net Investment Income (NIIT). NIIT is an additional 3.8% tax on certain net investment income of individuals and certain trusts or estates who meet a Modified Adjusted Gross Income … Read More
The long-term (assets held over 12 months) capital gains tax rates during 2020 are: Capital Gains Tax Bracket 0%: Income between $0 – $39,37515% : Income between $39,376 – $434,55020%: Income over $434,55028%: Maximum Tax Rate on Section 1202 QSBS Gains that are not excludable More on calculating your QSBS exclusion Read More