File 018084
Email Forwarding Tax Benefits Article on Startup Investments (File 018084)
Email from Jeffrey Epstein to Faith Kates forwarding an article by Craig Sherman and Andrew Bryant about federal tax incentives for startup investments and angel investing enacted under President Obama's administration in 2010.
Summary
Epstein forwards an article discussing a federal tax provision that exempts profits from certain startup investments from federal income tax if held for five or more years and sold between September 28 and December 31, 2010. The article explains that investors could potentially avoid federal income taxes on up to $10 million in gains from qualified small business stock investments, with the option to roll over gains tax-free within 60 days if a liquidity event occurs within five years.
From: Jeffrey Epstein [jeeyacation@gmail.com]Sent: 10/28/2010 4:16:11 PMTo: • Faith Kates [Special tax benefits could help founders and investorsby Craig Sherman and Andrew Bryant on Tuesday, October 26, 2010, 9:10am PDTCraig Sherman and Andrew Bryant: A little noticed provision of a recently enacted federal tax law may leadto a significant increase in the formation of new startups and angel investing before the end of this year. If youhave been thinking about founding or investing in a technology startup, there is no better time to jump in andtake advantage of a recently enacted federal income tax benefit.President Obama recently signed into law changes to tax law that may, under certain circumstances, exemptprofits from investments in startup companies from ALL federal income tax, including alternative minimumtax. Yes, that's right, if you start a new company now and sell it more than five years from now and make a $10million profit on the sale, you may owe NO federal income taxes on your profit.This special tax benefit will apply only to stock issued to founders or investors between September 28 andDecember 31, 2010, so time is of the essence.The founder or investor would have to buy and hold shares of a "qualified small business" for five or moreyears. A "qualified small business" is a C corporation engaged in an active trade or business with less than $50million in aggregate gross assets.If you satisfy the above requirements and certain other conditions, you may not have to pay federal incometaxes on your first $10 million of gain. If there is a liquidity event within five years of your purchase ofqualified small business stock, you may still be eligible to "roll over" any gains from sale of the shares tax-freewithin 60 days into another qualified small business.***********************************************************The information contained in this communication isconfidential, may be attorney-client privileged, mayconstitute inside information, and is intended only forthe use of the addressee. It is the property ofJeffrey EpsteinUnauthorized use, disclosure or copying of thiscommunication or any part thereof is strictly prohibitedand may be unlawful. If you have received thiscommunication in error, please notify us immediately byreturn e-mail or by e-mail to jeevacation@gmail.com, anddestroy this communication and all copies thereof,including all attachments.HOUSE OVERSIGHT 018084