New Tax Benefits for Investing in Small Businesses

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The global economic meltdown has caused investors to take a new look at investing in private companies and the tax breaks that might arise from such investments. The recently enacted federal stimulus package contains such a tax break, excluding 75 percent of the gain on the sale of shares of certain companies from federal taxation. This tax break serves to encourage investment in startup companies that would normally have difficulties enticing capital investment.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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