Blog Category: Taxation

On 4th July 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law. The OBBB has introduced significant tax benefits for investors, including QSBS reforms and an increase in the gift and estate tax exemption limit. The OBBB also provides numerous benefits to businesses, such as enhanced R&D deductions, introduction of … Continued

With the provisions of the Tax Cuts and Jobs Act expiring by the end of 2025, the gift and estate tax exemption limit could drop from $13.99 million to just $7 million. High net worth individuals need to accelerate their estate planning efforts by leveraging trusts to minimize tax liabilities. People often underestimate the impact … Continued

Angel investors, venture capitalists, and family offices that frequently invest in high-growth businesses have an extraordinary tax-saving opportunity under Section 1202 of the IRC. Such investors can potentially exclude 100% of their gains from QSBS investments. However, as with any great opportunity, this one comes with its own challenges.  Since these tax benefits are meant … Continued

For startup founders, the journey from idea to exit involves numerous financial decisions. Section 1202 of the IRC creates a remarkable incentive to reward the risk-takers who pour their time, resources, and vision into creating small businesses that drive American innovation. QSBS represents one of the most significant tax advantages available to founders who build … Continued

In 1976, Apple started as a partnership between Steve Jobs, Steve Wozniak, and Ronald Wayne. To attract investors and scale its operations, the budding tech company soon became a corporation, a pivotal move that set the stage for its rise to become one of the largest companies in the world. Today, many small businesses find … Continued

As we roll into 2025, we hope one of your New Year resolutions is to avoid the late filing of tax returns. If so, you are right on track to avoid late filing penalties which can be as high as 25% of your unpaid taxes. You must note that the US tax season will begin … Continued

The estate and gift tax exemption sunset is drawing closer day-by-day. Right now, you could make lifetime estate and gift transfers of up to $13.61 million and not pay any taxes. However, from 2026 onwards, this limit could be reduced to $6.99 million, or even $5.49 million if inflation is not considered. Hence, many business … Continued

As years went by, numerous types of equity interests have cropped up. New forms of equity interests like convertible securities and phantom stocks had to be created since investor needs evolved and equity compensation became a popular way to attract employees. Similarly, as business models and income sources evolved, so did the tax regulations. However, … Continued

Operating a business as an LLC comes with tax considerations, even though it’s commonly known as a “pass-through” entity for federal income tax. It means the LLC usually doesn’t pay federal income tax, but important filing requirements remain. A limited liability company can be taxed in many ways, but it always provides flexibility to the … Continued

Planning and managing your equity ownership is essential to your financial strategy and must be among your top financial objectives.  It will reduce your potential for overfocus and help you save money. You must know how to play the game when you have anything at stake. As a first step, familiarize yourself with the various … Continued

Sweat equity is the exchange of labor for stock or a stake in the business. If you have any doubts, taxes are always due on sweat equity when you receive it or offer it, and you need to account for sweat equity taxation. Sweat equity is a valuable instrument that you may utilize to aid … Continued

For founders, startup taxation is one of the biggest sources of stress. Many can relate if you’re a new business owner who can’t afford an accountant but still has to deal with the dreaded task of filing your company’s taxes. Unfortunately, you can’t avoid dealing with this issue. Due to the enormous yearly cost of … Continued

Taxpayers can exclude income on the sale of qualifying small company shares (QSBS) under Internal Revenue Code Section 1202. Section 1202 encourages investment in small businesses, and investors may get spectacular profits. When a stakeholder other than a corporate business sells QSBS that was bought after September 27, 2010 and was held for over five … Continued

The percentage of a startup’s shares sold to investors is called startup equity. As a result, investors will receive ownership and rights to the startup’s potential profits. It is typically given out in the form of stock options. As a startup grows in popularity, all subsequent investors will be willing to pay more per share … Continued

Private companies and early-stage startups require funding, for which they need to raise capital with the help of shareholders and investors. And as a result, Congress created a tax law in the United States that provides several tax incentives to people who invest in these early-stage businesses. The U.S. government in 2015 passed The Protecting … Continued

The AMT (alternative minimum tax) is an additional tax system that calculates the tax liability twice. The AMT was introduced as a part to enforce the belief that all taxpayers should pay a minimum share of their income to the federal government, regardless of whether they have many deductions or not. The purpose of AMT … Continued

Golden parachutes are expensive severance provisions written into senior executives’ contracts that recompense them if they are fired. Golden parachutes may include continued insurance and pension benefits in addition to signing bonuses and stock rewards. If a business executive is forced to leave a company due to a merger, acquisition, or takeover, a golden parachute … Continued

Have you ever completed your tax return and been surprised by the amount of taxes you owe the IRS compared to what you expected? It’s possible that you’re unaware of how tax regulations affect you and your income. To avoid this from happening again, it’s crucial to understand the ISO 100K regulation, especially if you’ve … Continued