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[Podcast] Here’s why taxes impact your investing decisions

Capitalmind Podcast

NOTE

Turning Startup Loss into Tax Benefit

When a startup fails, you can turn the loss into a tax benefit by selling shares to a spouse at a nominal price before the company goes bust. By recording this transaction and proving the company's failure, you can claim the amount as a capital loss. This loss can be offset against other gains such as long-term capital gains. If you don't have gains immediately, you can carry forward the loss for up to eight years and utilize it when you have long-term capital gains in the future.

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