A famous quote by Barry Goldwater "the income tax created more criminals than any other single act by the government". This is true in many cases as the IRS estimates that there was a total of $1.8B in tax fraud in 2019. There are certain sections of … Read More
If you are an individual investor, an employee holding stock options, founder, investment fund, or even a tax advisor you can or can help your clients realize huge tax savings by becoming familiar with an overlooked section of the tax code. Section 1202 allows the above stakeholders … Read More
YESSSS it is possible to make a "tax-free investment" without needing to qualify as a 501(c)(3) nonprofit, government entity, or investing in municipal bonds. Navigating the tax code is like playing chess, you need to have a strategic gameplan with various scenarios mapped out to make your … Read More
"Never invest in anything that eats or needs repairing." - Billy Rose Putting Section 1202 QSBS (i.e. qualified small business stock) and convertible note ("QSBS Convertible Note") in the same sentence is a recipe for an "investment needing repaired". If you have stumbled upon this page there are … Read More
If you enjoy investing in small businesses/startups and saving money on taxes then you should learn more about the QSBS exemption, creating tax-free wealth. The couple in the above picture just found out they can save up to 100% on capital gains tax (...they didn't really it's … Read More
Qualifying QSBS investments are not hard to find but they can be hard to maintain. A few key caveats to consider when navigating your investment tax planning for follow on investments is (i) the QSBS asset test, (ii) the timeline, and (iii) the tax exclusion. The QSBS … Read More
For gains on the sale of stock to qualify for the Section 1202 capital gains tax exclusion, there are two main criteria on a stockholder level, which are (i) how the stock was acquired, (ii) how long the stock has been held, (iii) how the stock was … Read More
Section 1202(h)(4) states "the basis of such stock in the hands of the taxpayer shall in no event be less than the fair market value of the property exchanged", meaning that the property exchanged for QSBS is valued at fair market value (FMV) and not historical cost … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform What even is this so called SAFE note? A "SAFE" note stands for simple agreement for future equity. SAFE notes were invented by the famous Silicon Valley accelerator fund Y Combinator. Since … Read More
A "SAFE" note stands for simple agreement for future equity. SAFE notes were invented by the famous Silicon Valley accelerator fund Y Combinator. Since 2013, SAFEs have become popular with founders because they were initially supposed to be fairer to founders, but that is not always the … Read More