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.
Seven Signs Your Noncompliance Will Be Considered Willful
Seven Signs Your Noncompliance Will Be Considered Willful There are many ways taxpayers can get the attention of the IRS. Although a lot of people make innocent mistakes when they file their tax returns, there are others who willfully look for ways to skip out on the taxes they owe. The IRS does treat those…
Make Sure Your Heirs Inherit What You Want
Make Sure Your Heirs Inherit What You Want. The saying goes that their only two things that are certain in life: death and taxes. While people can generate endless amounts of money when they’re alive, they can’t live forever and they can’t take that wealth with them when they die. However, they can have a…
Will Taxing the Rich Even More Improve Inequality?
Will Taxing the Rich Even More Improve Inequality? It’s been the cry of democratic lawmakers and many of the less fortunate for years: “We need to tax the wealthy even more.” “The rich have to pay their fair share of taxes, too.” The problem is the rich already pay a huge portion of the country’s…
It Pays to Be Rich for These Five Tax Breaks
It Pays to Be Rich for These Five Tax Breaks Although it’s true that the ultra-wealthy are heavily taxed, and in many cases unfairly, there are also some tax break advantages that favor the upper class more than those in the middle. Let’s take a look at some of these breaks. Most common and first…