Small business stock gain tax exclusion

Individuals generally may exclude from taxable income from 50% to 100% of the gain from the sale of certain small business

stock acquired after 2/18/09 and before 12/31/10. There are some limitations as follows:

·         The stock must have been held for 5 years or more

·         Maximum gain excluded $10 million

·         A “qualified small business” is defined as a domestic C Corporation with gross assets of $50,000,000 or less

·         The stock must have been acquired in exchange for money, property or as compensation for services – and be an original issue

·         The business must have 80% of its assets used in an active trade or business

For more information or for a review of your specific circumstances, please call James Moore & Co. CPA’s at 352-378-1331.

Carol Villemaire, CPA | Partner

JAMES MOORE & CO., P.L.
Certified Public Accountants and Consultants

5931 NW 1st Place, Gainesville, FL 32607-2063
Ph: (352) 378-1331 | Fx: (352) 372-3741 | Cell: (352) 339-3442
Email: Carol@jmco.com
Website: www.jmco.com