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Can an investor contribute property to a CDE to obtain an equity investment that qualifies for the credit?

April 26, 2017CDE contribute credit equity Investment investor obtain Property qualifies

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Can an investor contribute property to a CDE to obtain an equity investment that qualifies for the credit?

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The credit is available only in cases in which the stock of a corporation, a membership interest of a limited liability company, or capital interest in a partnership is acquired at original issuance for cash. An investment acquired through an underwriter at original issuance would meet this requirement.