Private Equity/Venture Services

The Small Business Jobs and Credit Act of 2010 (the Act) was signed into law by President Obama on Sept. 27, 2010.  The Act includes a temporary exclusion for 100 percent of any gain recognized on the sale of qualified small business stock (QSBS) acquired after Sept. 27, 2010, and before Jan. 1, 2011.  In addition, during this period, the excluded gain is not treated as a preference item for purposes of Alternative Minimum Tax, although other limitations may apply.  This change results in a potentially significant federal income tax benefit to non-corporate investors, essentially reducing to zero the federal tax rate for capital gain on QSBS to which the change applies. Investors only have until Dec. 31, 2010, to take advantage of this tax benefit.

Read the entire article written by Kristine Danz about the Act's temporary provisions.