Planning for Future Tax Benefits of Investing in Regulation Crowdfunding Securities

摘要

At the intersection of Regulation Crowdfunding (Reg CF) and the preferential tax treatments for small business stock gains and losses is an opportunity to increase the likelihood of the best aftertax outcome, which is maximizing after-tax gain or minimizing after-tax loss. To achieve this outcome, investors must select Reg CF offerings using a tax planning lens by leveraging the commonalities between Regulation Crowdfunding and the tax benefits afforded for small business stock gains and losses under Sections 1202 and 1244. This article identifies the similarities and differences between Reg CF and Sections 1202 and 1244 and suggests tips to prepare for best-and worst-case after-tax scenarios.