You made a $5,000 investment (in a QSBS C-Corp) through VentureSouth in 2016 and we sent you back $45,000 for the capital gain in 2018. What tax do you owe?If you’ve followed the last posts, you should have enough information to say “I hoped it would get the Section...
Why do we claim that angel investing can create especially attractive types of capital gains? The answer is Section 1202 of the tax code. (Primary source here for those that like to read the tax code.) Section 1202 basically says that capital gains from angel...
A basic angel investment might be:Find a C-CorpBuy shares (preferred equity) in itWait until someone buys your shares.From a tax perspective, that is a simple story: buy shares; later someone buys them from you; you pay capital gains taxes on your gain.With numbers:...
Before Thanksgiving, we replied to a Forbes article claiming the tax advantages from angel investing were not exciting compared with those from real estate investing.Two weeks ago, an ecosystem partner emailed asking “Do your deals / investors use the Sec 1202...
Across our series of posts last month, we tried to slay the myth that most angels lose money. Most VentureSouth angels do not.An avid reader and successful angel suggested we consider the post-tax returns (thanks Malay), so here we go.First, taxes on successful...
Our recent series of posts about the South Carolina angel investor tax credit (summary here) and Crowdr video (here) about the tax implications of angel investments prompted several people to email with questions. Below are our attempts at answers. As always, discuss...
Last week saw the window close for claiming the SC angel investor tax credit for 2014, and last week Matt and Lowcountry Angels ran seminar explaining how the tax credit works. We have an introduction to the credit on our "tax credit" page.These events prompted...