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. MORE

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

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? MORE

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. MORE

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. MORE

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. MORE

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. MORE

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 >. MORE

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. MORE

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. MORE

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? MORE

« 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. MORE

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. MORE

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

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. MORE

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). MORE

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. MORE

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. MORE

If your company is owned directly by an individual or a family, or if it received capital from venture capital, private equity, or angel funds, will make a difference in how the new tax rates will be applied, and the best way for you to act. MORE

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. MORE

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. MORE

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. MORE

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. MORE

Knowing this small bit of information can save you tons MORE

The budget proposal would modify IRC Section 1202 to provide for a complete exemption from capital gains tax for qualified small business stock issued after February 17, 2009 and held for five years, and the amount excluded would not be added back for alternative minimum tax purposes. ELIMINATE CAPITAL GAINS TAXATION ON INVESTMENTS IN SMALL BUSINESS STOCK. The taxable portion of the gain is taxed at a maximum rate of 28 percent. MORE

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. MORE

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 MORE

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

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

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!). MORE

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. MORE

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. MORE

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. MORE

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. MORE

Capital Gaines: Smart Things I Learned Doing Stupid Stuff. Written By: Chip Gaines, Narrated By: Chip/Joanna Gaines. Before becoming a HGTV star, renovation expert, bestselling author, husband and father, Chip Gaines was a serial entrepreneur. MORE

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 MORE

This means that there’s no need to tie up the full market value of purchasing the equivalent stock position and traders can instead open larger position than their capital would normally permit. ETX Capital gives you access to up to 6,000 markets, and can help you stay informed. MORE

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. MORE

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. MORE

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. MORE

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. MORE

It''s a thin needle to thread, but venture capital and private equity companies, not to mention their even more rarefied hedge fund compatriots, are often small companies. percent, in lieu of paying a lower capital gains rates of around 15 percent. MORE

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% MORE