1044(a), individuals and C corporations can elect to roll over any realized gain on the sale of publicly traded securities if the proceeds are reinvested into an SSBIC
within 60 days from the date of the sale.
By their charter, SSBICs
are required to invest in businesses owned by the socially or economically disadvantaged.
He also wants to see the bill changed to include gains realized by corporations that purchase stock or partnership interests of SSBICs
If the entire proceeds of publicly traded securities are rolled over into an SSBIC
, the gain is deferred--not excluded--because the basis in the SSBIC
stock or partnership interest must be reduced by the amount of the gain that would otherwise be recognized.
The amount of gain that otherwise would be recognized reduces a taxpayer's basis in the SSBIC
interest; when (or if) this interest eventually is sold, any gain is recognized and taxed.
also leverage outside capital and then invest the money in disadvantaged or minority-owned businesses.
Another benefit to holders of corporate SSBIC
stock is the fact that, under I.
Like the typical SSBIC
, Renaissance is a private company licensed and funded in part by the Small Business Administration.
As an SSBIC
, Milestone will receive $4 in federal money for every dollar it raises.
We hope to increase the private capital in the SSBIC
industry by 50% to 100% within the next five years," says Brittain.
To the best of the company's knowledge Freshstart is the only publicly traded SSBIC
Freshstart is, to the best of management's knowledge, the only publicly traded SSBIC