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View Diary: Truth in Taxation (9 comments)

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  •  They renewed it for 2013. (1+ / 0-)
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    VClib

    Not sure if it's permanent, but it's a 100% exclusion. This is the 1202 qualified small business stock exclusion, yeah?

    The diarist is out of his league; the amount of the exclusion turns on when the stock was issued, and the tax rate on the gain is 28%.  It's also an AMT preference item.

    It can be very powerful, but surprisingly often it's more useful as a state tax tool rather than a federal one.

    •  Thanks johnny! (0+ / 0-)

      "let's talk about that"

      by VClib on Sun Apr 14, 2013 at 08:00:33 PM PDT

      [ Parent ]

    •  "Out of his depth?" (0+ / 0-)

      Mr. Wurster, yes, this is section 1045 as to the rollover. the 100% exclusion is set to expire at the end of this year, but so are a lot of things, and the Bush tax cuts were set to expire at the end of last year before everyone agreed to make the bulk of them permanent.

      The exclusion is 1202. Contrary to your statement, that section 1202(a)(4) specifically prevents the exclusion from being an AMT preference this year, and at worst on 7% of the gain is a preference. Please actually know what you are talking about before blowing off others. I don't purport to be a genius, but I do read the code before commenting on it.

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