Did you know that there is gold lying around on the ground courtesy of Obama?

Specifically, new temporary income tax rules for start-up, and other small business, stock acquired in the Next Three Months provide that the Income Tax Rate for later sales of that stock is (pretty much) ZERO.

From three days ago (September 28, 2010) through New Years Eve (December 31, 2010), if a US individual is lucky enough to buy the right kind of stock from the right kind of start-up and holds it for 5 years, a vast swath of the gain realized by such individual on a later sale of that stock just might be TAX FREE.

And no, this is not limited to some targeted industry located in some narrowly defined “prosperity zone.” Many companies are already the “right kind” of company and can easily sell the “right kind” of stock.

Oh, and for those of you AMT-style doubters, there is no AMT preference in this super-special US tax holiday. So, that would make it a ZERO federal tax.

Hmm. Wondering if I should form a start-up in the next three months.

#clockisticking #tempting

Read more here. And the law can be found here (see Section 2011 of the Act and note the magic words: “paragraph (7) of section 57(a) shall not apply”).