3 ms·
If you invest under a certain threshold you can actually deduct the full amount from taxes in case of failure. Don't recall the details, but it makes for a pret
by troels 13y ago
If you invest under a certain threshold you can actually deduct the full amount from taxes in case of failure. Don't recall the details, but it makes for a pretty sweet deal for angel investors.
- PeterisP 13y agoIf it's fully tax deductible, then you simply don't pay tax on that amount (not reduce your payable tax by that). It saves you about a third of the money, but doesn't make it risk-free.
- troels 13y agoI was thinking about the EIS scheme. There's some explanation here: http://en.wikipedia.org/wiki/Enterprise_Investment_Scheme http://en.wikipedia.org/wiki/Enterprise_Investment_Scheme I believe the most important part is this: If EIS shares are disposed of at any time at a loss, such loss can be set against the investor's capital gains or his income in the year of disposal. So basically, if you take a loss, you can deduct it against any other gains you have.
- PeterisP 13y agoExactly, so what it says is if you have 10.000 loss on share-A, and 10.000 capital gain on share-B, then you can set the loss against your gain and not pay tax on that 10k of income. I.e., purely for the share-A you still lose the 10.000 but gain a "tax credit" worth some % [whatever your rate is] of that. A common misunderstanding is that you'd get "tax credit" of 10.000, which you don't.