SPRING 2022

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THE DISTRIBUTOR’S LINK
ROMAN BASI SECTION 1202 STOCK: HOW TO EXCLUDE UP TO $10 MILLION ON THE SALE OF YOUR BUSINESS! – PART 2 from page 70
[6] The issuing corporation does not significantly
redeem its stock within a two-year period beginning
one year before the issue date. A significant stock
redemption is redeeming an aggregate value of stocks
that exceed 5% of the total value of the company’s stock.
If your business satisfies these requirements,
then congratulations! When you sell your company, you
should be able to exclude (almost all) of your federal
capital gains tax. State taxes that conform to federal tax
will also exclude capital gains of small business stock.
Since not all states correlate with federal tax directives,
taxpayers should seek guidance on how their states treat
realized profits from the sale of qualified small business
stocks.
Let’s walk through an example whereby a business
owner decides to close up shop and sell their business.
The business owner is single and has $410,000 in
ordinary taxable income, therefore placing them in the
highest tax bracket. They sell qualified small business
stock acquired on September 30, 2010 and have a
realized profit of $50,000. The taxpayer may exclude
100% of their capital gains, meaning the federal tax due
on the gains is $0. The exclusion could possibly be even
greater if the applicable state laws recognize Section
1202! Now, let’s change the facts a little bit. Suppose
the taxpayer purchased the stock on February 10, 2009,
and after five years sells it for a $50,000 profit. The
Federal tax due on capital gains would be 28% x (50%
x 50,000) = $7,000. This example really illustrates the
importance of timing with regards to when the stock was
acquired. Only stock acquired on or after September 27,
2010 is eligible for exclusion of up to $10 million.
Business owners should immediately check with
their legal counsel, accountant, or business broker
regarding the structure of their business, ESPECIALLY
if they plan on selling their business within the next few
years. Failure to do so could potentially leave millions on
the table!
ROMAN BASI
ANTHONY DI MAIO WHAT JUSTIFIES THE USE OF BLIND RIVETS? from page 74
Pressure And Leak Resitant Jointing
Blind rivets expand when set filling and plugging the hole
it is in from incursion by water, fumes etc. With sealant
applied to the barrel side of the flange, that when set on
roofs of police cars, water will not leak into the vehicle.
Vibration Resistance
Set blind rivets do not loosen, shake out or back off
as screws and bolts do. As blind rivets, when set fill the
hole completely and tightly, there is no possibility of slide,
slippage cannot exist. Locking devices, thread adhesives
and lock washers are unnecessary
Overcoming Mismatching
Blind rivets can be selected to overcome poor hole
alignment and oversized holes. Since blind rivets hold
by expansion inside the hole, irregularities can be
compensated for during installation.Not all blind rivets
are capable of filling oversized holes. The strong pull up
characteristic of the blind rivet allows even separated parts
to be pulled together and joined.
Foolproof Installation
While nuts could be forgotten at assembly, screws
not torqued and adhesives not set correctly, blind rivets
can only be set or not set. Once the setting tool cycle is
run the blind rivet is set and the mandrel is broken off
automatically producing a positive visually inspectable
joint. The operator of the setting tool is easily taught
and requires no adjustment or tinkering.
Variety
Blind rivets being standard for many years, are
available in many styles, types and sizes at low cost
and without lengthy delays for set-up and tooling.
Special modifications for unique features such as
shoulders to attached components.
Material range from steel, stainless steel, aluminum
to even plastic. Styles include large diameter heads for
load distribution, countersunk heads and even of set
stand-off heads for molding attachments. Colored blind
rivets to match styling needs.
ANTHONY Di MAIO