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Capital Gains Tax Gift Gets Dialed Back for Tech Investors (1)

Oct. 31, 2018, 12:31 PMUpdated: Oct. 31, 2018, 3:55 PM

Dan Borok got excited when last year’s Republican tax overhaul included a provision that stood to help his venture capital firm pursue its mission of funding businesses and creating jobs in Newark, New Jersey.

Then came the fine print.

Borok said he was stunned earlier this month by a long-awaited Treasury Department proposal detailing how taxpayers qualify for special breaks by investing in low-income areas throughout the U.S. While the guidelines are generous to investors, buried in the rules is a clause that could deter venture capitalists -- and investment in businesses that could stimulate those downtrodden neighborhoods.

One of ...

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