#equity-instruments
Equity Instruments
Understanding stock, SAFE notes, convertible notes, and startup financing structures
Section 1244 Stock: How Failed Startup Investors Can Deduct Up to $100,000 as Ordinary Loss
Section 1244 of the Internal Revenue Code lets qualifying small business stock losses be deducted as ordinary losses up to $50,000 per year for single filers and $100,000 for joint filers, bypassing the $3,000 annual cap on capital losses. This guide covers the corporate and shareholder requirements, how to claim the loss on Form 4797, and the documentation traps that disqualify ordinary-loss claims.
Cap Table Management for Startups: A Practical Guide from Seed to Exit
A practical guide to managing a startup cap table from incorporation to exit — covering SAFEs, priced rounds, option pool sizing, 409A valuations, vesting mechanics, dilution math, and the diligence-ready habits that prevent costly equity surprises.
Alternative Minimum Tax: What It Is, Who Pays It, and How to Minimize It
The AMT is a parallel federal tax system that disallows many standard deductions—here's how it's calculated, which 2025 exemption thresholds apply, and concrete strategies (from ISO exercise timing to bond selection) to reduce your exposure.
Understanding Equity Instruments: A Comprehensive Guide for Startups and Investors
Gain essential insights into equity instruments, the backbone of startup financing. This guide covers everything from traditional stocks to innovative financing structures, helping entrepreneurs and investors navigate the complexities of ownership and investment returns.