Help for Entrepreneurs Connecticut Innovations (https://ctinnovations.com/) is Connecticut’s strategic venture capital arm and is the leading source of financing and ongoing support for innovative, growing companies. By offering equity investments, strategic guidance and introductions to valuable partners, we enable promising businesses to thrive. CTNext (https://ctnext.com/) has an array of … Read More
Beyond following the Section 1202 tax exclusion, Missouri offers four different tax credit programs to businesses and investors in the state of Missouri. Enhanced Enterprise Zone Tax CreditWine and Grape Tax CreditRebuilding Communities Tax CreditSmall Business Incubator Tax CreditQuality Jobs Program Tax Credit Read More
The state of Missouri founded the Missouri Technology Corporation ("MTC"), a state Venture Program, in 2005 as a vehicle to provide capital, resources, and partnerships to entrepreneur innovation in the state of Missouri, fostering long-term economic growth and development. MTC has deployed over $27M in funding through … Read More
QSBS Section 1244 was passed in 1958. It allows for losses from venture investing by taxable individuals to be deducted against ordinary income. Joe Milam, CEO of AngelSpan, Inc. has been leading efforts to update / modernize the "Impact Incentive" to at least update the levels and … Read More
Another avenue could be to create a management holding company where the insurance, finances, and payroll are managed. According to the AICPA, a qualified small business for Section 199A QBI can be a management holding company. Tax accountants and lawyers have been looking to Section 199A for … Read More
This scenario is a typical transaction structure that PE funds will utilize. When a fund is acquiring a members interest in a pass through entity and not stock in a corporation the fund will set up a blocker corporation so that the income is not passing through … Read More
The below graphic illustrates a PE fund acquiring the assets of an existing company. The PE fund will then form a new corporation and contribute the assets at FMV to the corporation in return for newly issued shares of QSBS. Remember… this can only be done if … Read More
The graphic below illustrates the ownership structure after 100% of the stock is acquired in a qualified small business. The PE fund would form a holding company that would issue QSBS to the PE fund after infusing capital into the holding company. The holding company would then … Read More
Purchasing existing stock or assets in a company does not qualify as qualified small business stock (QSBS). QSBS has to be newly issued stock and qualify as a Section 1202 qualified small business. Refer here for details on what constitutes a qualified small business. Section 1202 of the … Read More
To report a Section 1244 loss on your taxes input the loss on line 10 column (a) and the allowable loss in column (g) of Form 4797 and any excess loss is reported on Schedule D and Form 8949. Read More