I think a $250 corporate formation is an excellent gift for hackers this holiday season!
If grellas or a competent tax attorney would weigh on in this, it would be most appreciated; I'll donate $100 to the charity of your choice for a published writeup of SBJA2010 QSBS and how it applies to founder shares, sort of a howto, before 15 DEC 2010.
Pittsburgh, PA based Carbis Walker LLP (CPA firm) offers advice on SBJA2010 that includes this paragraph ...
Start-up expenditures.
A certain amount of qualified business start-up expenses may be deductible in the tax year in which the active trade or business begins. The new law increases the amount of start-up expenditures that a taxpayer may elect to deduct from $5,000 to $10,000 for tax years beginning in 2010. The new law also increases the deduction phase-out threshold so that the $10,000 is reduced, but not below zero, by the amount by which the cumulative cost of qualified start-up expenses exceeds $60,000.
Yeah, that's a good point too. The core issue is the applicability of SBJA/QSBS to new startups and founder shares, I think -- that's potentially a savings on $10mm of capital gains and AMT preference, which could easily be $3mm by 2016.
The other trick this year is that you can convert 401k and IRA to Roth and split the income over 2011 and 2012 (2 years), or from 2010 forward, effective removal of income limits for Roth. Roth IRAs are awesome if you have really low income a few years (but some savings), and then future much higher income.
Comments
I think a $250 corporate formation is an excellent gift for hackers this holiday season!
If grellas or a competent tax attorney would weigh on in this, it would be most appreciated; I'll donate $100 to the charity of your choice for a published writeup of SBJA2010 QSBS and how it applies to founder shares, sort of a howto, before 15 DEC 2010.
Pittsburgh, PA based Carbis Walker LLP (CPA firm) offers advice on SBJA2010 that includes this paragraph ...
Start-up expenditures.
A certain amount of qualified business start-up expenses may be deductible in the tax year in which the active trade or business begins. The new law increases the amount of start-up expenditures that a taxpayer may elect to deduct from $5,000 to $10,000 for tax years beginning in 2010. The new law also increases the deduction phase-out threshold so that the $10,000 is reduced, but not below zero, by the amount by which the cumulative cost of qualified start-up expenses exceeds $60,000.
http://www.carbis.com/tax/sbja2010.php
hth
Yeah, that's a good point too. The core issue is the applicability of SBJA/QSBS to new startups and founder shares, I think -- that's potentially a savings on $10mm of capital gains and AMT preference, which could easily be $3mm by 2016.
The other trick this year is that you can convert 401k and IRA to Roth and split the income over 2011 and 2012 (2 years), or from 2010 forward, effective removal of income limits for Roth. Roth IRAs are awesome if you have really low income a few years (but some savings), and then future much higher income.