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Topic: Miscellaneous
Number of pages / Number of words: 6 / 1454
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The 1244 status encourages investors to put

equity capital into your business because in the event of a

loss, amounts up to the entire sum of the investment can be

written off in the current year. Without the "1244"

classification, any losses would have to be spread over

several years, and this, of course, would greatly lessen the

attractiveness of your company's stock...


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Any business

owner who has not filed the 1244 corporation has in effect

cut himself off from 90 percent of his prospective investors.

Particularly when sales are down, you must be

"hard-nosed" with people trying to sell you luxuries for your

business. When business is booming, you undoubtedly will

allow sales people to show you new models of equipment

or a new line of supplies; but when your business is down,

skip the entertaining frills and concentrate on the basics...


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