Qualifying for Exclusion: 5-year Holding Period

The stock has to be held for more than 5 years in order to qualify as “eligible gains” for QSBS purposes. (as per Section 1202(b)(2)). Although this is true it is possible to maintain your timeline if the stock is sold early using Section 1045. There are also various nuances to be considered when determining your timeline.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About QSBS Expert

QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.