Small Business Capital Gains Exemption – what happens after January 1st?

Small Business Capital Gains Exemption – what happens after January 1st?

Great Article from Perkins Coie

For investments in qualified small business stock made after December 31, 2010, only 50% of the capital gains generally will be excluded from gross income.  However, in most situations, these capital gains will be taxed at an effective rate equal to the 20% expected long-term capital gains rate as a result of the higher capital gains tax rate applicable to the non-excluded portion of the capital gain and the application of the alternative minimum tax, effectively eliminating the benefit of the exclusion.

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