[{"sender": "Jeffrey Epstein [jeevacation@gmail.com]", "recipients": ["Faith Kates"], "timestamp": "10/28/2010 4:16:11 PM", "subject": null, "body": "Special tax benefits could help founders and investors\nby Craig Sherman and Andrew Bryant on Tuesday, October 26, 2010, 9:10am PDT\n\nCraig Sherman and Andrew Bryant: A little noticed provision of a recently enacted federal tax law may lead\nto a significant increase in the formation of new startups and angel investing before the end of this year. If you\nhave been thinking about founding or investing in a technology startup, there is no better time to jump in and\ntake advantage of a recently enacted federal income tax benefit.\n\nPresident Obama recently signed into law changes to tax law that may, under certain circumstances, exempt\nprofits from investments in startup companies from ALL federal income tax, including alternative minimum\ntax. Yes, that’s right, if you start a new company now and sell it more than five years from now and make a $10\nmillion profit on the sale, you may owe NO federal income taxes on your profit.\n\nThis special tax benefit will apply only to stock issued to founders or investors between September 28 and\nDecember 31, 2010, so time is of the essence.\n\nThe founder or investor would have to buy and hold shares of a \"qualified small business” for five or more\nyears. A “qualified small business” is a C corporation engaged in an active trade or business with less than $50\nmillion in aggregate gross assets.\n\nIf you satisfy the above requirements and certain other conditions, you may not have to pay federal income\ntaxes on your first $10 million of gain. If there is a liquidity event within five years of your purchase of\nqualified small business stock, you may still be eligible to \"roll over\" any gains from sale of the shares tax-free\nwithin 60 days into another qualified small business."}]