Entrepreneur Incentive Act of 1985

[AI summary unavailable — showing source text] Entrepreneur Incentive Act of 1985 - Amends the Internal Revenue Code to permit a taxpayer who sells a capital asset which has been held for more than six months to not recognize any gain realized on the sale to the extent that the amount realized from such sale is invested in a qualified small business investment within one year of such sale. Provides that the maximum amount of gain which may not be recognized cannot exceed $125,000 for the taxable year and all prior taxable years. Treats any exchange of property as a sale for purposes of the nonrecognition provisions. Prohibits the nonrecognition of gain to the extent the gain is ordinary income. Requires the basis of the small business investment to be reduced by the amount of gain not recognized on the sale of the property. Extends the period of statute of limitations with respect to assessment of tax relating to such sale or exchange. Permits a deduction for amounts paid by the taxpayer for the purchase of stock of a small business corporation from such corporation under a qualified stock purchase plan. Limits the deduction in a taxable year to $15,000 ($30,000 for a joint return). Requires a qualified stock purchase plan to: …