Some Texas angel investor groups are hoping their members take advantage of a federal provision exempting them from capital gains taxes on investments made by the end of the year. But others question whether it’s too late in the game.
The Small Business Jobs Act of 2010 includes the provision for investments made from Sept. 27 to Dec. 31 as a way to create more jobs during the sluggish economy. More check writing by angel investors would be a huge benefit to Austin’s startup community because the Central Texas Angel Network is one of Austin’s most active investors in early-stage companies.
The act’s provision, referring to “gains on qualified small business stock,” applies to investments only in C corporations with gross assets of $50 million or less after Aug. 9, 1993, and before it issued the stock. The provision includes other requirements such as a five-year holding period, but the Angel Capital Association is recommending that members capitalize on the window of opportunity.
To read the full, original article click on this link: Investors get tax break if they act fast - ABJ Entrepreneur
Author: Christopher Calnan
