Posts by Watermark Advisors

Section 1202 was enacted in 1993 and was meant to help encourage investment in small businesses. Put simply, Section 1202 allows individuals to avoid 100% of the federal capital gains tax incurred upon the sale of qualified small business stock (also known as QSBS), given the shareholder and business have met the (many) requirements that…

M&A Had a Banner Year in 2021 There is no question that 2021 was a year for the record books in the M&A marketplace. In the US, over 18,500 M&A transactions closed vs. 14,800 in 2020. After a dramatic drop in M&A volume in 1H’20 due to COVID-19 rearing its’ ugly head, the M&A market…

The capital gains tax has been a topic of debate for many years, as both individuals and business owners must take these one-time taxes into account when exiting investments. Among other tax hikes currently proposed by the Biden Administration, the proposed Federal long-term capital gains hike under consideration for assets sold greater than $1MM is…