Eric Bernheim’s Post

Connecticut is leading the way. Connecticut's "angel" tax credit encourages investment in startups at their earliest stages. Last week, U.S. Senator Chris Murphy reintroduced a bill seeking congressional approval for a federal angel tax credit. This bill aims to replicate Connecticut's successful program on a national scale, allowing angel investors to claim a tax credit equal to 25% of their investments in U.S. technology startups. A similar bill introduced in 2022 did not progress past the U.S. Senate Committee on Finance. We are looking forward to seeing how this develops. If you've benefited from this Connecticut program, comment below how it did. #StartupInvestment #AngelTaxCredit #Innovation #TechStartups #corporatelaw

Connecticut is leading the way. Connecticut's "angel" tax credit encourages investment in startups at their earliest stages. Last week, U.S. Senator Chris Murphy reintroduced a bill seeking congressional approval for a federal angel tax credit. This bill aims to replicate Connecticut's successful program on a national scale, allowing angel investors to claim a tax credit equal to 25% of their investments in U.S. technology startups. A similar bill introduced in 2022 did not progress past the U.S. Senate Committee on Finance. We are looking forward to seeing how this develops. If you've benefited from this Connecticut program, comment below how it did. #StartupInvestment #AngelTaxCredit #Innovation #TechStartups #corporatelaw

Connecticut is leading the way. Connecticut's "angel" tax credit encourages investment in startups at their earliest stages. Last week, U.S. Senator Chris Murphy reintroduced a bill seeking congressional approval for a federal angel tax credit. This bill aims to replicate Connecticut's successful program on a national scale, allowing angel investors to claim a tax credit equal to 25% of their investments in U.S. technology startups. A similar bill introduced in 2022 did not progress past the U.S. Senate Committee on Finance. We are looking forward to seeing how this develops. If you've benefited from this Connecticut program, comment below how it did. #StartupInvestment #AngelTaxCredit #Innovation #TechStartups #corporatelaw

Connecticut is leading the way. Connecticut's "angel" tax credit encourages investment in startups at their earliest stages. Last week, U.S. Senator Chris Murphy reintroduced a bill seeking congressional approval for a federal angel tax credit. This bill aims to replicate Connecticut's successful program on a national scale, allowing angel investors to claim a tax credit equal to 25% of their investments in U.S. technology startups. A similar bill introduced in 2022 did not progress past the U.S. Senate Committee on Finance. We are looking forward to seeing how this develops. If you've benefited from this Connecticut program, comment below how it did. #StartupInvestment #AngelTaxCredit #Innovation #TechStartups #corporatelaw

How to put $200,000 down the garbage disposal: There's a guy (I'll call him Greg) who sold his business for over $10 million last year. The business wasn't QSBS eligible so Greg paid over $2 million in capital gains tax for 2023. But it turns out he didn't have to. You see, Greg sold his company in March 2023, and in February 2024 he invested $1 million into a new company he started. RIGHT next to Greg's new startup office is an Opportunity Zone... If Greg had organized his startup one zip code over, he could have easily qualified the startup as a Qualified Opportunity Zone Business (QOZB). That would have immunized the $1 million he invested into the QOZB from capital gains taxes. That's $200,000 of tax savings for just the hassle of filling out some paperwork and finding a different office down the street. (The whole thing is sort of like a 1031 exchange but for companies instead of real estate). But that's not the only tax loophole Greg missed out on. If Greg sells his startup in 10 years for $100 million, he will owe taxes on another $99 million of capital gains (that's nearly $20 million of taxes). But if that startup had been a QOZB, then the entire $20 million tax bill would have been ELIMINATED. I'm talking about a permanent erasure of capital gains, not just a deferral like a 1031 exchange. In summary: With a small amount of effort, Greg could have saved $200,000 in capital gains taxes last year AND potentially saved $20 million of capital gains taxes in the future. So why didn't he? Because Greg (like most people) thought Opportunity Zones only applied to real estate. They don't. They're even more valuable for people starting or buying companies. In fact, if you have ANY capital gains from the last 6 months, you can still retroactively eliminate them by forming your own Qualified Opportunity Fund, investing into that fund, and then using that money to fund your own Qualified Opportunity Zone Business. Under certain situations, you can even eliminate capital gains from the entirety of 2023. Greg unfortunately was not in one of these "certain situations", but you might be. I wrote an entire article on how to use opportunity zones to start or buy businesses (link in the first comment below) 👇👇👇

“Every business doing R&D is already claiming tax credits.” Sure, many established businesses are already claiming R&D tax credits, but a surprising number of qualifying companies aren’t claiming what they’re entitled to. Some reasons why: Outdated Advice: Some businesses were told they don’t qualify years ago and haven’t re-evaluated since. Often the person making these assessments has limited understanding of what does and doesn't qualify for R&D. Its worth a second opinion. Evolving Operations: Others may not have conducted R&D in the past but are innovating now. These companies are leaving valuable support on the table. If you are innovation then its worth checking to see if you qualify. New Kids on the Block: Every year, thousands of tech-led startups are founded (over 50,000 tech companies incorporated in the UK last year alone!). Many are completely unaware of R&D tax credits, or they’ve put it off, prioritising other urgent needs. The sooner you engage with a specialist the better. Heads up: As of 1st April 2024, if you’ve never claimed R&D tax credits before and plan to, you’ll need to notify HMRC within six months of your financial year-end—or risk missing out on that year’s claim entirely. Don’t let this slip through the cracks! The good news? It's not that hard to find out if what you are doing is eligible. If you’re innovating—whether in software, fintech, or another sector—it’s worth revisiting R&D tax credits to see if your activities qualify. This isn’t just about saving money; it’s about fuelling future growth and supporting your business’s journey toward innovation. Want to explore this further? Let’s have a chat! Drop a comment below or send me a message. Don't miss out on your dough!!!! (Sorry I needed to somehow link the photo of me with a loaf of bread into the post) Have a great week peeps 😊 #MondayMythBusting #RDTaxCredits #InnovationFunding #TechStartups #Growth

UK founders rush to sell startups ahead of Autumn Budget- Very interesting point to digest 👇 https://lnkd.in/eXm2rCUX From a Tax Point: There is the belief that UK taxpayers contribute their fair share, but unfortunately, potentially the use of funds may have been wasted. The frequent changes in tax laws, particularly around income tax and capital gains tax, create unnecessary hurdles for businesses. This instability makes it difficult for businesses to grow and successfully exit, often leading to their failure. It’s crucial for new entrepreneurs to establish a strong business structure from the outset—one that not only maximizes operational efficiency but also optimizes tax planning to ensure long-term success in an ever-evolving regulatory environment. ----- Follow All Chance Hub to learn from more innovative insights

Vice President Harris is rolling out the welcome mat for startups with bigger tax breaks! But before we jump for joy, small-business owners have a few questions. Are taxes going to become our new startup partner? Read more here: https://okt.to/a5oMCT

U.S. Senator Tammy Baldwin (D-WI) introduced legislation to provide tax relief to entrepreneurs looking to start a small business and reduce barriers for startups. The Tax Relief for New Businesses Act would increase the startup tax deduction from $5,000 to $50,000 and allow businesses to write off more expenses to compensate for the increasing cost of starting a business. Currently, small business owners can only deduct up to $5,000 in startup costs in the first year, yet a recent survey found that they spend an average of $40,000 to get their businesses off the ground. “On Main Streets across Wisconsin, small businesses are creating jobs and contributing to our local economies. For too many entrepreneurs, starting a business can be out of reach and it’s our job to break down the barriers in their way so more Americans can pursue their dreams,” said Senator Baldwin. “This legislation is a commonsense step that will unlock opportunities for Wisconsin’s next generation of small businesses and help ensure they have the capacity to grow, innovate, and shape the future of the Badger state.” #wisconsin #forward

Seeking to create new things is important, but for many of us, experiencing entrepreneurship through "buying and building" a small business rather than via a start-up is safer and more practical, and those small businesses are vital to our local economies. And so, we hope tax proposals like this one, which reportedly will 10x the amount in tax deductions offered for startups, are structured to promote acquisition entrepreneurship, too. https://lnkd.in/gZR_3Qt4