Capital Expenditure refers to funds a business uses to acquire, upgrade, or maintain long-term assets such as property, equipment, or technology. Unlike operating expenses, which cover day-to-day costs, CapEx is aimed at investments that provide benefits over multiple years.
The Qualified Small Business Stock (QSBS) exclusion is a tax incentive under Section 1202 of the Internal Revenue Code that allows investors to exclude up to 100% of capital gains from the sale of eligible small business stock.
Adjusted Taxable Income (ATI) is a measure of income used primarily in tax and financial calculations, particularly for determining business interest expense limitations under U.S. tax law. It is generally calculated as taxable income before considering non-cash deductions such as depreciation, amortization, and depletion, as well as interest expense and certain tax attributes.
If you are a business owner thinking about succession, estate planning, or gifting shares, the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, brings significant changes that could affect your plans. While the bill covers a wide range of tax and spending policies, its most immediate impact for closely held businesses lies in how it reshapes the tax landscape and, by extension, business valuation and planning.
