The White House recently announced a capital gains tax extension on select small business investments as part of a larger initiative to promote entrepreneurship and encourage private-sector investments.
"Startup America" is the Obama administration's national campaign to stimulate high-growth entrepreneurship across the nation. One of the initiatives is to make the 100 percent capital gains tax exclusion on sales of certain small business stock included in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 permanent. Currently, the tax benefit applies to stock held for more than five years and issued after December 31, 2010 and before January 1, 2012, Accounting Today reports.
This could provide a significant boost to businesses that are seeking investments from the private sector. In order to maximize the extra funds that they would have at their disposal, companies should make sure to avoid duplicate payments by seeking the services of firms that can look for lost money not caught by internal systems and controls.
President Barack Obama announced his support of the Startup America campaign, emphasizing the importance of entrepreneurs to the nation's economy.
"Entrepreneurs speak to what's best about America, and in their drive and innovative spirit – in their willingness to take a risk on a bold idea – we can see the future," said Obama in a statement.