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.

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

Gust

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

Gust

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.

[Infographic] How Do Taxes Affect Your Startup?

YoungUpstarts

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.

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.

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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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.

Understanding Stock Options

YoungUpstarts

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.

Top Tax Mistakes Made by Entrepreneurs

Deimar

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.

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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Do You Need An ETF Or A Mutual Fund?

YoungUpstarts

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.

Sideways Startups: An Investor’s Dilemma

Gust

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).

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.

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?

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

YoungUpstarts

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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5 Reasons Why Investors Are Doing More 1031 Exchanges Than Ever

YoungUpstarts

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

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.

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.

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

Chaganomics

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.

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.

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.

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

YoungUpstarts

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.

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.

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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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.

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%

How Your Business Could Generate Extra Income Through Investments

YoungUpstarts

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.

This National Entrepreneurship Month, Listen And Learn With These Bestselling Audiobooks

YoungUpstarts

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.

Why New York State Wants in VCs' Pockets Too

Inc Startups

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.