The Small Business Jobs Act of 2010 (SBJA), signed into law in September, adds or renews several attractive tax incentives for small business, and makes other important tax changes (including beefed up penalties) you need to know about. This is the last in our three-part series explaining key provisions of the SBJA with tax experts from CBIZ.
100% Exclusion of Gain on Sale of Qualified Small Business Stock: Historically, 50 percent of the gain from the sale of qualified small business stock held at least five years could be excluded from income, but remained subject to the alternative minimum tax. The remaining 50 percent of such gain was taxed at 28 percent. The exclusion percentage increased from 50 percent to 75 percent for qualified small business stock acquired after February 17, 2009 and before 2011. Read the full entry