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Black Momma Tea & Cafe

Invest like the wealthy and No Federal Taxes on Capital gain profits up to 20 Million with a Qualified Small Business stock. IRS Code 1202

on Sep 19 2019

Its time to school on why to invest like the Accredited , VC and Hedge Funds.

Black Momma Tea & Cafe is a Qualified small business stock.

A qualified small business stock (QSBS) is the stock—or shares—of a qualified small business (QSB), as defined by the Internal Revenue Code. A qualified small business is an active domestic C Corporation whose gross assets, valued at original cost, do not exceed $50 million on and immediately after its stock issuance.

*Please talk to a CPA but my CPA informed me of the Sextion 1202 IRS Code long ago.

Investors in a Qualified Small Business Stock (QSBS) can be eligible 100% federal tax free of capital gains up to 20 Million or 5x capital gain

Section 1202, also called the Small Business Stock Gains Exclusion, is a portion of the Internal Revenue Code (IRC) that allows capital gains from select small business stock to be excluded from federal tax. Section 1202 of the IRS Code only applies to qualified small business stock acquired after September 27, 2010, that is held for more than five years.

KEY TAKEAWAYS

Under Section 1202, capital gains from select small business stocks are excluded from federal tax.

It provides an incentive for non-corporate taxpayers to invest in small businesses.

Not all small business stocks qualify. ( retail and manufacturing qualifies) 🤩

Understanding Section 1202 ( Obama made this Tax Benefit Permanent)

The Protecting Americans from Tax Hikes (PATH) Act of 2015 was passed by Congress and signed into law by President Barack Obama. The PATH Act renews some expired tax provisions for a couple of years and permanently extends some tax benefits. One tax break, made permanent by the Obama administration, is the Small Business Stock Capital Gains Exclusion found in Section 1202 of the Internal Revenue Code.

Section 1202 provides an incentive for non-corporate taxpayers to invest in small businesses. The capital gains exemption from federal income tax on the sale of small business stock is the underlying purpose of this IRC section. A small business stock held for at least five years before selling will have a portion or all of its realized gains excluded from federal tax.

This is how Private Equity get ahead , now you have the opportunity too ! 🙋🏽‍♀️