Gains on Sales of Qualified Small Business Stock

2003 ◽  
Vol 1 (1) ◽  
pp. 21-40
Author(s):  
Cheryl T. Metrejean ◽  
Dan R. Ward ◽  
Eddie Metrejean ◽  
Suzanne P. Ward
Keyword(s):  
Small Business ◽  
Tax Incentives ◽  
Tax Law ◽  
Preferential Treatment

Tax law allows preferential treatment for certain types of transactions. Investment in qualified small business stock (QSBS) is one area where several provisions exist to encourage this type of investment. This paper examines two provisions that apply to sales of QSBS that result in gains. One provision, I.R.C. §1202, provides for an exclusion of up to 50 percent of the gain on the sale. The second, I.R.C. §1045, provides for a deferral of gain on the sale of QSBS if the proceeds are reinvested in other QSBS. While valuable tax incentives are associated with the use of either of these provisions, the question arises as to whether both of these provisions can be used together with regard to the same sale of qualifying stock, and if so, in what order. The provisions are illustrated separately and followed by a discussion and illustration of the provisions in combination.

DEVELOPMENT OF SMALL BUSINESS AND PRIVATE ENTREPRENEURSHIP DURING A PANDEMIC

2021 ◽  
Vol 4 (4) ◽  
pp. 4-11
Author(s):  
Dilobar Islamova ◽  
◽  
Shukurillo Yoqubov ◽  
Xolidbek Abduvohidov
Keyword(s):  
Small Business ◽  
Tax Incentives ◽  
Business Environment ◽  
Private Entrepreneurship ◽  
Development Analysis

This article examines the importance of small business and private entrepreneurship during the pandemic, the tasks performed, and the prospects for development. Analysis of investments, loans, tax incentives and achievements in the field of small business and private entrepreneurship, improving the business environment, creating opportunities for small business and private entrepreneurship

Tax Incentives and Small Business Mutual Aid Partiticipation

2021 ◽  
Vol 23 (6) ◽  
pp. 2919-2931
Author(s):  
Seokjin Woo ◽  
Byung-hill Jun
Keyword(s):  
Small Business ◽  
Tax Incentives ◽  
Mutual Aid

Mixed Blessing of Being Designated a Small Business: A Four Country Comparison

2007 ◽  
Vol 5 (1) ◽  
pp. 16-34 ◽  
Author(s):  
Sheila Killian ◽  
Stewart S. Karlinsky ◽  
Garry Payne ◽  
Jackie Arendse
Keyword(s):  
Small Business ◽  
Best Practices ◽  
Economies Of Scale ◽  
Tax Compliance ◽  
Tax Incentives ◽  
Economic Benefits ◽  
Business Community ◽  
Playing Field ◽  
Country Comparison ◽  
Mixed Blessing

This article will focus on how four countries' income tax laws define a small business and how the taxing authorities and legislators attempt to prevent small business definitions from being exploited by potentially unintended users or for unintended purposes. We will use the experiences from four diverse countries (Australia, Ireland, South Africa, and the U.S.), which take their roots from the same legal system (England) to see if there are best practices that can be adapted for these and other countries as well. A fundamental question that arises when discussing tax incentives and disincentives for small business is why carve out special provisions for this segment of the business community? The answer, as discussed below, is two fold: one, the economic benefits that small business yields the economy is material and significant; two, economies of scale as to both regulatory (including tax) compliance costs as well as costs of goods and materials warrant incentives to level the playing field with large businesses.

scholarly journals Tax Law Asymmetries and Income Shifting: Evidence from Japanese Capital Keiretsu

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Kazuki Onji ◽  
David Vera
Keyword(s):  
Tax Incentives ◽  
Attrition Rate ◽  
Income Shifting ◽  
Tax Law ◽  
Group Level ◽  
Large Dataset ◽  
Corporate Groups ◽  
Negative Income ◽  
Level Data ◽  
The Impact

Abstract While the asymmetric treatment of positive and negative income creates clear tax incentives to shift income among a group of closely related corporations, attempts to document the impact of such behavior on economic outcomes are relatively sparse. We aim to provide evidence on tax-motivated transfers from a large dataset of Japanese corporate groups. Using company level data on 33,340 subsidiary time pairs from 1988, 1990, and 1992, we consider testable implications of income shifting in a theoretical model tailored to the Japanese institution of the early 1990s and empirically examine the spread of the profitability distribution, the attrition rate of loss-making subsidiaries, and the propensity to report zero profit. The findings suggest that income shifting was pervasive when Japan had not adopted a formal allowance for group-level tax. The result underscores the importance of accounting for the inter-relatedness of companies, in designing a corporate income tax.

Institutional environment for the development of small business in the Mari El Republic: A tax aspect

2020 ◽  
Vol 18 (3) ◽  
pp. 525-545
Author(s):  
R.K. Shakirova
Keyword(s):  
Small Business ◽  
Tax Policy ◽  
Institutional Environment ◽  
Tax Incentives ◽  
Business Development ◽  
Small Enterprises ◽  
Small Business Development ◽  
Comparison Time ◽  
Development Methods ◽  
Series Study

Subject. Small business plays an important role in solving social and economic problems. Tax system is one of the most important institutions that have an impact on the activity of small enterprises. Objectives. The purpose of the study is to formulate the priorities of tax policy in the Mari El Republic on the basis of assessing the level of small business development. Methods. For the study, I used structural and analytical grouping, comparison, time series study as well as the abstract-logical techniques. Results. The article assesses the implementation of the main target indicators of small business development in the Mari El Republic. The research is of a scientific and applied nature. Its results can be used to formulate a regional tax policy in the field of small and medium-sized business in Mari El Republic. Conclusions. The provided opportunities in the field of tax regulation as well as the practicality of increasing regional competencies in the field of tax incentives for small business should be more used in the Mari El Republic.

Tax Exemption, Moral Reservation, and Regulatory Incentivisation

2010 ◽  
Vol 1 (3) ◽  
pp. 219-225
Author(s):  
Roger Brownsword
Keyword(s):  
Cord Blood ◽  
Technological Innovation ◽  
Tax Incentives ◽  
Patent Law ◽  
Regulatory Environment ◽  
Tax Law ◽  
Blood Banking ◽  
Regulatory Approach ◽  
Cord Blood Banking

This paper focuses on those parts of the regulatory environment that are designed to encourage scientific and technological innovation. Patent law is the obvious example; but tax law can also signal encouragement for particular activities. The key question is whether regulators will, or should, withhold tax incentives where there are some, but not universal, moral reservations about an innovation. In order to earth this question, three recent cases at the ECJ, two involving the controversial practice of cord-blood banking, are examined. Insofar as these cases offer any evidence of the prevailing regulatory approach, it seems to be similar to that found in patent law – that is, moral reservations do not count against the applicability of a tax exemption so long as they are not universally recognised.

scholarly journals ПОДАТКОВІ ІНСТРУМЕНТИ ФІНАНСОВОГО ПІДТРИМКИ МАЛОГО БІЗНЕСУ В РОСІЇ

2021 ◽  
pp. 46-51
Author(s):  
Марина Михайлівна Богданова
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Financial Support ◽  
Tax Incentives ◽  
The State ◽  
Tax Burden ◽  
Tax Regimes ◽  
Business Entities ◽  
Tax Holidays ◽  
Tax Payments

This article is devoted to the study of the topic of tax levers for regulating the activities of small businesses in Russia. Tax aspects of business are included in the scope of financial support from the state for legal entities and individual entrepreneurs. The aim of the study is to analyze the tax instruments through which the state provides financial support to small businesses. The subject of the research is the measures of state financial support for small businesses in terms of taxation. In the course of the research, such methods were applied as: comparative, statistical, descriptive, analysis and synthesis. Research hypothesis. Identification of the optimal tax instruments for financial support of small business will allow the subjects of this sphere of the economy to function effectively without causing a conflict of interest between entrepreneurship and the state in paying taxes to the budget. Presentation of the main material. Small business entities in the Russian Federation have the right to state support in the form of financial, property, information, and consulting assistance. Financial assistance, as the most significant, consists in the provision of government subsidies, preferential types of loans, tax holidays, special tax regimes, simplified accounting procedures, etc. Tax instruments of financial support are of key importance for business entities, as they allow regulating the tax burden depending on the types of activities, the scale of the organization, the amount of income and many other factors. For Russian business entities, there are 5 taxation regimes, of which one is general and four special (preferential), tax holidays for small businesses and tax incentives for types of taxes. Originality and practical significance of the research. A comparative analysis of special tax regimes showed that the profitability of a particular tax regime is determined by the goals of the business, the scale and scope of activity. Conclusions and prospects for further use. The use of special tax regimes helps to optimize tax payments, and tax incentives reduce the tax burden of business entities. However, in the current conditions of the spread of the pandemic, increased attention from the state to small businesses is required in order to regulate the possible loss of profitability due to the introduction of restrictive measures, and, as a result, a decrease in the population's ability to pay, which, in turn, will negatively affect the replenishment of the country's budget with tax payments.

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