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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.
If the election is made, gain from the sale of the publicly traded securities is currently taxable only to the extent that the amount realized from the sale exceeds the cost of the SSBIC stock or interest.
In 1993, an exception was created if taxpayer elects to rollover the sales proceeds into the purchase of common stock or a partnership interest in a specialized small business investment company (SSBIC) within a 60-day period beginning on the date of the sale of the publicly traded securities.
They expect the risk-adjusted returns on private equity to be higher than the risk-adjusted returns on other investments, and they want to diversify their portfolio by asset class.(7) While SSBICs receive funding through the federal government and are required to invest in minority-owned businesses, the program is designed so that the private investors in the SSBIC are financially driven.
* Did the former owner(s) reinvest the proceeds in a qualified small business (SSBIC)?
Jefferson hopes to amend this legislation to ensure that it applies to all specialized small business investment companies (SSBICs) grandfathered under recent amendments to the Small Business Investment Act.
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.
An SSBIC is defined as any partnership or corporation licensed by the Small Business Administration under Sec.
Bates consults with the SBA's SSBIC Advisory Council, made up of 17 leaders in the investment field, small business owners and SSBIC managers.
Not all taxpayers may elect to roll over their gain from the sale of publicly traded securities into an SSBIC. The RRA limits this benefit to individuals and C corporations.
Gains from investments in certain qualifying small businesses and from investments in specialized small business investment companies (SSBIC's) qualify for especially favorable treatment under the new tax law.
Enter Renaissance Capital, an Atlanta-based Specialized Small Business Investment Corporation (SSBIC).
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- SSBN Communications Project
- SSBN Security Program