For companies raising capital, the accredited investor definition largely determines who is in their pool of potential investors, and for investors whether they are eligible to invest in many early-stage companies. Many of the offering exemptions under the federal securities laws limit participation to accredited investors or contain restrictions on participation by non-accredited investors.
How can individuals qualify as accredited?
Individuals (i.e., natural persons) may qualify as accredited investors based on [verifiable] wealth and income thresholds, as well as other measures of financial sophistication.
Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
Tax Tips for Accredited Investors:
Conservation Easements have a multiplying effect on the money that you owe. In some cases, you can reduce your income taxes by 75%.
Real Estate Investment Trusts can provide income and savings through depreciation.
Oil and Gas Investment Deductions.
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