Guam Minutes of Special Meeting of the Board of Directors of (Name of Corporation) to Adopt Stock Ownership Plan under Section 1244 of the Internal Revenue Code

• Category: Corporations - Minutes and Resolutions
• State: Multi-State
• Control #: US-1077BG
• Format: Word; Rich Text

Description

Section 1244 of the Internal Revenue Code is the small business stock provision enacted to allow shareholders of domestic small business corporations to deduct a loss on the disposal of such stock as an ordinary loss rather than as a capital loss, which is limited to only $3,000 annually. Normally, stock is treated as a capital asset and if disposed of at a loss, the loss is deducted as a capital loss. The general rule for net capital losses (losses that exceed gains) is that they are subject to an annual deduction limit of only $3,000. Any excess over $3,000 must be carried over to the next year. A loss on Section 1244 stock is deductible as an ordinary loss up to $50,000 ($100,000 on a joint return, even if only one spouse has a Section 1244 loss).

Title: Guam Minutes of Special Meeting: Board of Directors Adopting Stock Ownership Plan under Section 1244 of Internal Revenue Code Keywords: Guam, Minutes of Special Meeting, Board of Directors, Stock Ownership Plan, Section 1244, Internal Revenue Code I. Introduction to the Stock Ownership Plan under Section 1244 The following document represents the minutes of a special meeting held by the Board of Directors of (Name of Corporation) in Guam. The purpose of this meeting was to adopt a Stock Ownership Plan as regulated by Section 1244 of the Internal Revenue Code. II. Opening Statement and Attendance 1. The meeting was called to order by [Name], Chairman of the Board of Directors. 2. The Notice of Meeting was read and confirmed. 3. A roll call was conducted to establish a quorum. The following directors were present: [List of Directors Present]. III. Adoption of Stock Ownership Plan under Section 1244 1. The Chairman presented a detailed overview of the Stock Ownership Plan proposed under Section 1244 of the Internal Revenue Code. 2. The benefits, objectives, and potential tax advantages of adopting this plan were thoroughly discussed. 3. After considerable deliberation, the Board unanimously agreed to adopt the Stock Ownership Plan under Section 1244 of the Internal Revenue Code. IV. Approval of Stock Ownership Plan 1. A resolution was presented, affirming the adoption of the Stock Ownership Plan. 2. The resolution was read aloud, discussed, and agreed upon by all attending directors. 3. The resolution was then voted upon and passed with unanimous consent. V. Adjournment and Next Steps 1. The Chairman thanked all directors for their active participation and valuable insights. 2. The meeting was adjourned. 3. The Board of Directors appointed a committee responsible for overseeing the implementation of the Stock Ownership Plan. 4. The committee was tasked with preparing all necessary documentation and communicating the plan to eligible participants. 5. The next regular meeting was scheduled for [Date] to review progress on the implementation of the Stock Ownership Plan. VI. Conclusion These minutes of the Special Meeting of the Board of Directors of (Name of Corporation) demonstrate that the Stock Ownership Plan under Section 1244 of the Internal Revenue Code has been officially adopted. The corporation is now set to reap the potential benefits and tax advantages outlined in the plan. (Variations of this document could include "Guam Minutes of Special Meeting: Board Approving Amendments to Stock Ownership Plan under Section 1244 of Internal Revenue Code" or "Guam Minutes of Special Meeting: Board Resolving Dissolution of Stock Ownership Plan under Section 1244 of Internal Revenue Code.")