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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG) -- Ignore unavailable to you. Want to Upgrade?


To: Zeev Hed who wrote (34152)8/28/1999 11:09:00 AM
From: Zbyte  Read Replies (1) | Respond to of 44908
 
Have you found that this is done through most PP's or just ours?



To: Zeev Hed who wrote (34152)8/29/1999 12:27:00 AM
From: cicak  Read Replies (1) | Respond to of 44908
 
Hi Zeev, in your opinion - do you think that a venture capital firm could conceivably make an equity investment in TSIG - sell TSIG within a few years (say 2 or 3 years) and then defer any capital gains by rolling over profits by investing in another start-up firm ? From what I have read, the answer is yes - but I am certainly no tax expert. It appears that venture capital firms and individual investors have an excellent tax incentive to invest in emerging small businesses.

Zeev, I welcome your opinion and realize you are not a tax expert either. Thanks.

Regards,

Phil

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techlawjournal.com

Capital gains taxes are paid on profits made on
investments in stocks, bonds, real estate and collectibles.
Section 1045 currently provides that individual taxpayers
may rollover tax-free any gain realized on a sale of
"qualified small business stock" when the sale proceeds
are reinvested in another qualified small business stock.

The rationale for this provision is to encourage individuals
to invest in emerging growth companies, and also to
encourage them to reinvest any profits once the original
investments mature. However, the "rollover" benefits of
õ1045 is currently limited to individuals.

What the new tax bill does is extend the benefits õ1045 to
noncorporate investors, including venture capital
partnerships.
It will encourage people to invest in venture
capital funds, which are a traditional source of seed
money for high-tech computer and Internet industry
companies.
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