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Wednesday, 12/30/2015 2:52:30 PM

Wednesday, December 30, 2015 2:52:30 PM

Post# of 8449
Tax-Free Profit on Small-Business Stock

image: http://www.kiplinger.com/slideshow/taxes/T054-S001-valuable-tax-breaks-brought-back-to-life/images/lab.jpg
slideshow image

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To encourage investors to take the risk of investing in start-up businesses, the law offers a special break on the profit from the stock of qualifying small businesses. If an investor holds the stock from the time it’s issued for at least five years, a certain percentage of the profit—up to a maximum of $10 million—can be tax-free. In 2014, 100% of qualifying profit was tax-free; for 2015, that was cut in half to 50%. Now the new law restores the 100% level for stock purchased in 2015 and future

Read more at http://www.kiplinger.com/slideshow/taxes/T054-S001-valuable-tax-breaks-brought-back-to-life/index.html#77DOPa00yDhzuuib.99

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