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  1.  
  2. ANGELS 411
  3. Tax Incentives
  4. Tax Advantages of Investing in Start-up Businesses
« Angel and VC Investor PowerPoint Pitches on Slideshare
Capital Gain Loss May Possibly be Written off Against Ordinary Income »

Tax Advantages of Investing in Start-up Businesses

20 Aug 2008   | Tax Incentives

Tags: angel · investor · tax

LINK TO ORIGINAL ARTICLE:
  • http://www.zeromillion.com/entrepreneurship/tax-advantages-business.html

For once the government and entrepreneurs have one thing in common: they both think that investing in small growing businesses is a good idea. In order to encourage investment in small businesses, Congress has authorized tax benefits for people who invest in certain small businesses.

If a small business meets the definition of a Qualified Small Business (“QSB”), as defined in the applicable sections of the Internal Revenue Code (the “Code”), investors in the business will have the opportunity to benefit from up to three types of preferential tax treatment:

– a 50% exclusion of gain realized by the investor upon the disposition of the stock (Section 1202 of the Code);
– deferral of the gain realized by the investor if the investor “rolls over” such gains by purchasing additional QSB stock (Section 1045 of the Code); and
– if the investor losses money on the investment, re-characterization of any capital losses as ordinary losses (Section 1244 of the Code).

>>> READ MORE at:
  • http://www.zeromillion.com/entrepreneurship/tax-advantages-business.html
« Angel and VC Investor PowerPoint Pitches on Slideshare
Capital Gain Loss May Possibly be Written off Against Ordinary Income »

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