Why Capital Gains Tax Reform Could Wreak Havoc on MLB Teams

Inc Startups

Adding one word to the tax code has put MLB teams on the defensive regarding taxes. Money

Why You Should Care About the Difference Between Capital Gains Tax Rates and Regular Income Tax

Inc Startups

Knowing this small bit of information can save you tons

Why the Capital Gains Tax Hurts Entrepreneurs

Inc Startups

The capital gains tax has been touted as the brass ring for business owners. For too long self-funded business owners have been led to believe that they are part of the group that could benefit from capital gains tax rates, notably when they sell their business (and this is true!).

Clinton to Propose Increasing Capital Gains Taxes

Inc Startups

The policy is part of a larger effort to encourage greater focus on longer-term economic growth rather than more immediate gains for investors--a priority for the liberal Democrats she'll need in 2016

Burnham's Beat: Theater of the Absurd: Capital Gains Now Being.

Burnham's Beat

Theater of the Absurd: Capital Gains Now Being Eliminated on Sale of VC/PE Management Companies. According to Bloomberg, there’s a nasty surprise in the bill that eliminates capital gains treatment for carried interest in investment partnerships.    Not only is the government planning on eliminating carried interest on the investment profits generated by a partnership, but they are planning on eliminating capital gains treatment on.

Sideways Startups: Donating Private Stock


Donations of private stock enable investors, founders and employees to support charitable causes and contribute to the community while receiving simultaneous benefits in the form of substantial cash savings from reduced taxes as well as bypassing capital gains taxes. original cost) – and in the cases of entrepreneurs who have founded companies, the cost basis is effectively zero – and a significant current market value that would result in large capital gains taxes if sold.

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How Trump's Proposed $100 Billion Tax Break for the Rich Could Be Huge for You Too

Inc Startups

President Trump wants to change how the capital gains tax is calculated--and that could be a boon for you. Money

Burnham's Beat: Carried Interest Deal Cut, Let the Workarounds.

Burnham's Beat

Theater of the Absurd: Capital Gains Now Being Eliminated on Sale of VC/PE Management Companies » 05/20/2010.   According the Way and Means Committee the bill will: " … prevent investment fund managers from paying taxes at capital gains rates on investment management services income received as carried interest in an investment fund.  interest in a company, yet invests well less than 1% of the actual capital, everyone. Venture Capital.

Burnham's Beat: Tesla Worth $1.7BN. According To Its Bankers

Burnham's Beat

« Theater of the Absurd: Capital Gains Now Being Eliminated on Sale of VC/PE Management Companies | Main. | Total shares outstanding after the IPO, including issued options would be 107.6MM giving the total company a fully diluted market capitalization of $1.72BN post-IPO if all goes according to plan (enterprise value will be over $2BN if they take down all their DoE financing). Venture Capital. Venture Capital. Burnhams Beat.

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So You Lost Money in the Stock Market? Don't Make this Common Tax Mistake to Lose Even More

Inc Startups

What you don't understand about capital gains and losses can cost you in a big way

Why Hillary Is Wrong About the Economy

Inc Startups

The candidate's focus on capital-gains taxes and quarterly earnings misses the point. Business owners are drowning in overregulation

Incentives and Carried Interest

Brad Hargreaves

Brad Hargreaves | startup adventures in nyc a blog by Brad Hargreaves HOME Me Press HOME Uncategorized Incentives and Carried Interest Incentives and Carried Interest The House recently passed a bill to tax carried interest at the higher income tax – rather than the lower capital gains – rates. First and foremost, I don’t really buy the argument that taxing money managers at a higher rate will directly lead to a decrease in capital flowing into funds.

Addressing the Dreaded Lifestyle Outcome


Three outcomes dominate exits of angel-funded companies: Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero). Positive exits – Companies that liquidate with capital gains to investors, usually via a cash sale to a larger company. While IPOs are possible, they are very rare for angel-funded companies. The exits can range from simply return of Read more >. Industry Experts

Addressing the Dreaded Lifestyle Outcome


Three outcomes dominate exits of angel-funded companies: Dead bugs – Startups that go out of business, returning less-than-invested capital to angels (usually zero). Positive exits – Companies that liquidate with capital gains to investors, usually via a cash sale to a larger company. While IPOs are possible, they are very rare for angel-funded companies. The exits can range from simply return of Read more >.

What’s Going On?

A VC : Venture Capital and Technology

7/ The Gotham Gal pointed out on her blog yesterday that buying convertible notes in angel rounds delays the start of the clock ticking on the QSBS capital gains exclusion. A lot, to be honest. It’s Crypto Week in NYC this week. The last two weeks have been a blur, with so many things happening that I can’t keep up or write about all of them. But, here are a few.

What Is Going To Happen In 2017

A VC : Venture Capital and Technology

Here’s what I expect to happen this year: Trump will hit the ground running, cutting corporate and personal taxes, and eliminating the preferential treatment of carried interest capital gains. The loss of capital gains treatment on carried interest won’t hurt professional investors too much because the lower personal tax rates will take the sting out of it. Happy New Year Everyone.

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Qualified Small Business Stock

A VC : Venture Capital and Technology

For the past twenty years, the US federal tax code has included provisions that allow startup investors to get favorable tax treatment on the capital gains they earn on early stage investments. 1045 and more than five years to qualify for gain exclusion. Sec 1045 allows a "tax-free rollover" which means that you can avoid paying the capital gains tax if the gain is "rolled over" meaning invested back into another QSSB.

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[Infographic] How Do Taxes Affect Your Startup?


On top of that, there’s the usual sales tax and capital gains tax to cover. It is uncommon for startups, especially new ones, to limit their expenses and bootstrap. It is one of the commonly used strategies to survive, especially in today’s competitive market.

Are Universities The New VCs?

A VC : Venture Capital and Technology

It is the human capital that is inside of them. I think capital gains from equity investments in startups that are birthed inside universities is an interesting idea and I am glad to see Stanford and some other schools trying it out.  hacking education Venture Capital and Technology The New Yorker has a piece on Stanford's StartX. They ask some interesting questions and end with this one: If the university is a farm, do the students become the cows?

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Why Entrepreneurs Start Companies Rather Than Join Them

Steve Blank

tax rate for individuals making over $100,000 was 70% and 90% (taxes on capital gains fluctuated between 20% and 25%.) Venture capital flourished when the tax rates plummeted in the late 1970s.

Why I Don’t Celebrate Income Inequality

Both Sides of the Table

Yes, income inequality exists and yes it’s a natural consequence of capitalism and other forms of government are decidedly worse than capitalism because they inefficiently create and allocate resources. They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. The system can be juiced in favor of capital over labor.

Why Taxing Carried Interest As Ordinary Income Is Good Policy

A VC : Venture Capital and Technology

The House has passed a bill this past week that would change the taxation of carried interest from capital gains treatment to ordinary income treatment. We have witnessed financial services (think asset management, hedge funds, buyout funds, private equity, and venture capital) grow as a percentage of GNP for the past thirty years. Changing the taxation of the managers will not reduce the amount of capital going to productive areas.

Top Tax Mistakes Made by Entrepreneurs


The most common business related expenses include: accounting and tax preparation costs, advertising, capital cost allowance, inventory purchases, lease payments, legal fees, meals & entertainment (50% only), rent, salary and wages, sub-contractors, supplies, office equipment and tools.

Do You Need An ETF Or A Mutual Fund?


Because these funds are traded in much the same way stocks are, there is less gain that leads to tax liability. Investors who want to eliminate or reduce their capital gain liability may find a good ally in these funds.

Understanding Stock Options


Profit from ISOs have the potential to be taxed as long-term capital gain, which is a considerably lower rate than NQSOs, which are generally taxed as ordinary income. This achieves the potential for long-term gain treatment on a sale at an earlier date.

How to Turn Your Home into a Business Location

Blogtrepreneur | Entrepreneur Blog

Capital Gains Tax Consideration Know that if you will use a part of your home for a business, you may have to pay capital gains tax when you put the home on sale, even if you didn’t claim any deductions for occupancy costs and mortgage interest when you operated the business.

Sideways Startups: An Investor’s Dilemma


1) Many flop (companies that do not return capital to investors) 2) some companies provide angels with an upside on their investment and 3) some companies go sideways. Current US tax regulations stipulate capital gains tax rates for most angel investment with positive returns. For many of those companies that fail, investors can write-off their investment against other income (ordinary income or capital gains, depending on the situation).

Would You Give Up Citizenship for $1 Billion?

Inc Startups

As an American, he might have owed about a billion in capital gains tax, but he won't owe any now because he decided to renounce his American citizenship. OK, so capital gains taxes are low, but perhaps all these fleeing Americans are running from plain old income taxes?

Steve Ballmer saved $100 million in taxes selling $2B in MSFT stock

Don Dodge on The Next Big Thing

By selling the stock before the end of the year Ballmer saves $100 million in capital gains taxes. Capital gains tax rates are expected to rise to 20% next year from the current 15%. Reuters is reporting that Microsoft CEO Steve Ballmer is selling 75 million shares of his Microsoft holdings netting $2 Billion. After the sale Ballmer will still own over 350 million shares or 4.2% of Microsoft.

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Taxing VCs' Carry as Income Won't Shift Behavior

Entrepreneurship Blog

To me the important question in the debate over whether or not VCs "carry" should be taxed as income rather than capital gains is " will increasing taxation levels change VC behavior? " The answer to this question is clearly no because there is no other industry that provides the same lifestyle to compensation ratio that venture capital does.

The Tax Advantages To Investing In Oil And Gas Your CPA’s Probably Never Heard Of


On the other side of the coin, TDCs are any asset or capital expenditure that can be recovered later. Casey Minshew is the Chief Operating Officer (COO) for EnergyFunders , an online marketplace evolving the way capital investment and energy projects come together.

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How the Rich Got Rich

Inc Startups

Capital gains: 45.8% million in capital gains income--16% of the total capital gains reported by all taxpayers. (Do Like to emulate the success of others? If wealth is what you're after, look to an unconventional source for tips: the IRS. John D.

2012: The Year to Sell?

Inc Startups

With the low capital gains rate set to expire and possible changes coming to the gift and estate tax rules, some small business owners would rather get out now than see what happens.

5 Reasons Why Investors Are Doing More 1031 Exchanges Than Ever


This is highly beneficial because it stops you from having to pay capital gains taxes on the sale of the old property.

Why You Can’t Afford To Wait To Create A Succession Plan For Your Small Business


Just remember if you sell the company before you die, you may have to pay capital gains tax. Large corporations have the leisure of falling back on a board of directors to them help look for a new president or CEO, when one retires, quits, becomes incapacitated, or unexpectedly dies.

Encouraging empowering innovation

The Equity Kicker

reduce capital gains tax for assets held for a long period. give capital gains tax breaks to entrepreneurs. Support the venture capital system with direct investmemt into funds. Yesterday I wrote about the distinction between empowering innovation that creates jobs and economic growth and efficiency innovation which improves profits but destroys jobs and does little for growth.

Measuring prosperity

The Equity Kicker

The major differences between the consumption and income measures come from realised capital gains, dramatic increases in public and private benefits (e.g. There is a related point that income is often calculated on a household basis but because average households now have fewer people in them a decline in household income doesn’t imply a decline in per capital income. A month or so ago I wrote about that Mismeasurement may be at the heart of the productivity paradox.

The Obama Effect on Selling Your Business

Inc Startups

Capital Gains Tax Rate Perhaps the issue that will have the biggest impact on potential small business sellers is the much-discussed capital gains tax rate. For many, this could bump their effective capital gains rate to 23.8%

6-year vesting

Venture Hacks

The clock on long-term capital gains starts as soon as you exercise them. Every team member of AngelList is on a 6-year vesting schedule. Including the founders. Because it takes a long time to build something important. And we want everyone to stick around for a long time. Because we want people who are here for the mission , not a payday. Because it sells prospective hires: the team you’re joining isn’t going anywhere. Does that mean I get more equity?

Thomas Piketty's bestselling post-crisis manifesto is horrendously flawed


Originally from The Telegraph by Allister Heath Given that today’s fashionable economic ideas tend to become tomorrow’s government policies, it’s not looking good for the future of free-market capitalism. Consider the current bestselling book in America, Capital in the Twenty-First Century, a hugely important work that has already become the defining post-crisis manifesto.