qualified small business stockIRC section 1202After a short analysis of policy considerations regarding qualified small business stock (QSBS), this article explains the general requirements to obtain the gaKarachale, Christopher ASocial Science Electronic Publishing...
The first test is relatively straightforward. At the time the stock is issued, IRC Section 1202(d) says that the corporation must have aggregate gross assets of $50 million or less. Note that if the value of the company subsequently exceeds $50 million, the exclusion won't be lost. It's...
The tax treatment for a QSB stock depends on the acquisition date and the holding period. Section 1202 of the IRC, enacted in 1993, allows noncorporate shareholders to exclude a portion of the gain from selling qualified small business (QSB) stock held for five years. For QSB stock acquired...
Business owners: Discover the potentially significant tax benefits of deferring or excluding gain on the sale of QSB stock.
1202 excludes from gross income at least 50% of the gain recognized on the sale or exchange of qualified small business stock (QSBS) that is held more than five years. For qualifying stock acquired after Feb. 17, 2009, and on or before Sept. 27, 2010, the exclusion percentage is 75%...
We help you understand Qualified Small Business Stock (QSBS) and connect you to the right resource. Learn the basics of QSBS.
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IRC Section 1202 provides the statutory basis for the qualified small business stock (QSBS) gain exclusion. In general, IRC Section 1202 allows a shareholder who invests in certain types of startup businesses to exclude up to $10 million of gain or 10 times her basis in the stock, provided...
How so? The tax benefit is called the “Qualified Small Business Stock (QSBS) exclusion,” which is shorthand for a provision in Section 1202 of the Internal Revenue Code (IRC). This Section 1202 of the IRC outlines rules that potentially investors exclude from federal taxation the entire ...
(the Act), signed into law by President Obama on January 2, 2013, extends—and makes retroactive—the ability of non-corporate investors to exclude from federal taxable income 100% of the eligible gain realized from the sale of “qualified small business stock” (QSB stock) held for more ...