Small Business Stock Gain Exclusion Receives 2014 Extension
It’s not like the government to bring everyone some well-needed Christmas cheer, but the new tax bill that lawmakers were finally able to pass brought some good news for many investors before the year ends. It’s unfortunate that it took the entire year to get it done, but at least the tax provisions that did get extended will be good for the entire tax year of 2014.
One important extension affected the small business stock gain exclusion. The new act signed this last week extended the 100% exclusion for small business stock acquired in 2014. That means if the individual shareholder holds the qualified small business stock for five years, they can exclude up to the first $10 million of capital gain for Federal purposes, instead of having to hold it for 10 years before doing so. The exclusion even applies for both regular tax and the Alternative Minimum Tax (ATM).
It’s important to note that for now this extension is only good for the year 2014 and does not apply to next year’s taxes, however, Congress could vote to extend it again next year, as well. If you would like to learn about the Sec. 1202 Small Business Stock Gain, and how it works, then just click here for a detailed explanation. And feel free to contact us at GROCO with any of your tax questions by clicking here.
IRS Publication 4681: Canceled Debts, Foreclosures, Repossessions, and Abandonments (For Individuals) For use in preparing 2008 Returns
IRS Publication 4681: Canceled Debts, Foreclosures, Repossessions, and Abandonments (For Individuals) For use in preparing 2008 Returns For use in preparing 2008 Returns Link: http://www.irs.gov/pub/irs-pdf/p4681.pdf This publication explains the federal tax treatment of canceled debts, foreclosures, repossessions, and abandonments. Generally, if you owe a debt to someone else and they cancel or forgive that debt,…
Update on Homebuyer’s Credits
Update on Homebuyer’s Credits Dear Client & Friends: On November 6, the President signed into law H.R. 3548, the ”Worker, Homeownership, and Business Assistance Act of 2009.” The new law extends and generally liberalizes the tax credit for first-time homebuyers, making it a much more flexible tax-saving tool. It also includes some crackdowns designed to prevent…
Revocable Living Trust: Family Financial Security
Revocable Living Trust: Family Financial Security The times in which we live have brought new uncertainty and increased anxiety to our front doors. With the threat of terrorism and the reality of war, our safety and that of our loved ones are at the forefront of our concerns. For many a continually disappointing investment environment…
Municipal Bonds: A Source of Tax-Free Income
[vc_row][vc_column][vc_column_text]There’s one readily available and legal source of untaxed income that we know of: municipal bonds. These securities are issued by state and local governments, school districts, hospitals and other public agencies to support community projects and services. To permit these worthy endeavors to raise money economically, Uncle Sam exempts the interest that they pay…