Monday, December 22, 2014
Angels: 100% Exclusion of Gains Now Law for 2014 InvestmentsBy: Marianne Hudson, ACA Executive Director Last week, President Obama signed the Tax Increase Prevention Act, which includes several benefits for small businesses and also a benefit for angel investors. We want to get this information out to you, as this benefit relates to investments made in 2014 (retroactively and through December 31). The new law includes a 100 percent exemption for gains made in Qualified Small Business Stock (also known as “Section 1202”) and this new law effectively means that you pay no taxes on gains from your investments that meet several criteria below and Alternative Minimum Tax does not apply. If you are interested in this program, PLEASE TALK TO YOUR ACCOUNTANT to ensure you have all the information you need to structure your investments to meet all requirements. Criteria and Limitations:
ACA will continue to work on making this program permanent or at least extend it for a meaningful period of time, and incorporate some improvements, such as reducing the holding period and making investments in LLCs qualify. Special tip of the cap go to the bi-partisan team of Rep. Lynn Jenkins (R-KS) and Rep. Ron Kind (D-WI) for ensuring that the 100% exclusion was included in the bill, and also to our government affairs team including Chris McCannell of APCO Worldwide. For more information, check out these articles:
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