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  1.  
  2. LEGAL/CORPORATE STUFF
  3. Selling Stock -- SEC Rules
  4. When an Eight-Figure IPO Windfall Can Mean a Zero-Digit Tax Bill
« Investment Return Illustration: LLC vs. C Corp | CTAN
6 Common Mistakes Founders Make That Ultimately Destroy Their Startups »

When an Eight-Figure IPO Windfall Can Mean a Zero-Digit Tax Bill

24 Aug 2019   | Selling Stock -- SEC Rules · Tax Incentives

Tags: QSBS · Qualified Small Business Stock

LINK TO ORIGINAL ARTICLE:
  • https://www.bloomberg.com/news/articles/2019-06-10/silicon-valley-wins-big-with-tax-break-aimed-at-small-businesses

Shares are eligible for Qualified Small Business Stock (QSBS) if they’re issued when a company has gross assets of $50 million or less. If you hold on to the stock for at least five years, you can avoid taxes on $10 million of any gains when you sell. But that $10 million is only a minimum—the law says you can instead shield as much as 10 times your initial investment, or basis, in the corporation. So a venture firm that put $10 million in an early startup could reap $100 million in tax-free gains. And QSBS’s benefit can be multiplied several-fold with clever planning.

>>> READ MORE at:
  • https://www.bloomberg.com/news/articles/2019-06-10/silicon-valley-wins-big-with-tax-break-aimed-at-small-businesses
« Investment Return Illustration: LLC vs. C Corp | CTAN
6 Common Mistakes Founders Make That Ultimately Destroy Their Startups »

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