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
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