sheilaoliver,I am quoting this from a newletter:"There is a form of capital gains tax that cap out at 14% no matter what your top bracket is. This is a special gift from the business lobbies that are trying to encourage us to create new capital for smaller companies which are the most profitable part of our cecomony."Is this true? Do my fellow FOOLS know some of these companies and will share those names?I'm sure some of the pros can address the specific parts of your question, but I went looking on www.irs.gov and found what I think is an answer to the "Is this true?" part...If you open (or download) <http://ftp.fedworld.gov/pub/irs-pdf/i1040sd.pdf> and search for "1202", you'll find:Exclusion of Gain onQualified Small BusinessStock (Section 1202) Section 1202 allows for an exclusion of upto 50% of the eligible gain on the sale orexchange of qualified small business stock.may have to recognize all of the postponedgain.The section 1202 exclusion applies only toqualified small business stock held for morethan 5 years. To be qualified small businessstock, the stock must meet all of the followingtests. -It must be stock in a C corporation (thatis, not S corporation stock). -It must have been originally issuedafter August 10, 1993. -As of the date the stock was issued, thecorporation was a qualified small business(QSB).And it goes on with more details. But, unfortunately, no examples...Hope this helps!Phooley in Phoenix
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