This benefit encourages the reinforcement of companies' equity through cash capital contributions made by their shareholders.
A Personal Income Tax (IRS) taxpayer who makes cash capital contributions to a company in which they hold an ownership interest and may deduct up to 20% of those contributions from the gross amount of the profits made available by that company or – should those shares be sold – from the balance between the capital gains and losses.
This 20% deduction will be applied when calculating the taxable income for the year in which the aforementioned constributions are made and in the following five years.
A Personal Income Tax (IRS) taxpayer who makes cash capital contributions to a company in which they hold an ownership interest and may deduct up to 20% of those contributions from the gross amount of the profits made available by that company or – should those shares be sold – from the balance between the capital gains and losses.
This 20% deduction will be applied when calculating the taxable income for the year in which the aforementioned constributions are made and in the following five years.
