QSBS is popping up more and more these days, whether in M&A transactions, IPOs, regulatory changes, politics, entrepreneurship and in many more areas. Here are some of the recent developments we are following.
Diving into Qualified Trades for QSBS: Health Services (7/7/2025) - Companies that are engaged in activities that do not fall under the definition of a Qualified Trade or Business risk eligibility for their stock qualifying as Qualified Small Business Stock (“QSBS”). All is not lost however if a company partakes in some “non-qualified” activities. Provided the value attributed to such activities is generally below 20%… Read More
QSBS Amendments in the “One Big Beautiful Bill” Head Back to the House (7/1/2025) - July 1, 2025 Today the senate narrowly passed the “One Big Beautiful Bill”. The provisions expanding IRC section §1202 / Qualified Small Business Stock (QSBS) remained unchanged from the initial version of the bill, and include: Increasing the Corporate-Level Aggregate-Asset Ceiling to $75M (from $50M prior to the bill) Increasing the Per Taxpayer Exclusion to… Read More Amendments to Qualified Small Business Stock (QSBS) in the Title VII Bill Aimed at Spurring Domestic Economic Activity (6/16/2025) - June 16, 2025 The U.S. Senate Finance Committee released legislative text within the Finance Committee’s jurisdiction for inclusion in Senate Republicans’ budget reconciliation bill today. Chairman Mike Crapo (R-Idaho) noted how the bill, “powers the economy by permanently extending critical pro-growth provisions and introduces new incentives for domestic investment, providing certainty for American job creators… Read More
Can foreign founders benefit from QSBS when moving their companies to the US? (5/8/2025) - Many non-U.S. startup founders initially incorporate in their home country but later reincorporate or create a subsidiary in the U.S. to access venture capital financing and a larger customer base. This trend is common among tech startups and businesses seeking global expansion. Additionally, the Trump administration’s new tariff policies have prompted certain companies to examine… Read MoreBreaking Down the Implications of Trump’s Executive Actions for VC Firms in 2025 (4/30/2025) - In early 2025, President Trump deployed a series of executive orders that could reshape regulations—and even deregulate—various sectors. These policy changes may significantly impact the venture capital (VC) ecosystem by opening new avenues for investment while also presenting challenges that stakeholders should consider. Many investors believe these policy changes could be very good for VC… Read More
Can too much inventory hurt a company’s QSBS prospects? (4/15/2025) - Under IRC Section 1202(e), at least 80% of a company’s assets must be actively utilized in a “qualified trade or business”. To ensure that assets are being actively deployed towards the qualified trade, a limitation exists on the amount of working capital that can be held (IRC Section 1202(e)(6)), whereby no more than 50% of… Read More
Top 5 QSBS items in preparation of your financing round with SeedLegals (3/21/2025) - In preparing for a financing round, most of the focus lands on deal terms, valuations, and investor outreach. But one of the most powerful long-term tax advantages is often overlooked: Qualified Small Business Stock (QSBS) treatment. To help founders, investors, and advisors navigate QSBS during financings, QSBSExpert.com and SeedLegals partnered to explore 5 key areas… Read More
OTA Releases Tax Report on QSBS Statistics (3/20/2025) - In January 2025, the Treasury Department's Office of Tax Analysis (OTA) released data quantifying QSBS claims. This is the first such report to quantify the volume of QSBS claims, and provides insights that can be useful in understanding the impacts of QSBS on economic activity. This study examined individual e-filed tax filings and QSBS claim… Read MoreClearer Paths to QSBS Eligibility: What the AICPA Wants You to Know (3/13/2025) - 26 U.S. Code Section 1202—“Partial Exclusion for Gain from Certain Small Business Stock,” better known as QSBS—offers plenty of upside for small businesses and investors. However, the legislation also contains a great deal of ambiguity, resulting in confusion among qualified small businesses and their investors. This uncertainty is why the American Institute of Certified Public… Read More
Detroit: Leveraging QSBS & Tax Incentives for Mobility Innovation and Beyond (3/4/2025) - Detroit is no longer just the Motor City—it’s quickly becoming a formidable contender in the startup investment landscape, according to the 2024 Rise of the Rest report by Revolution. Revolution, a D.C.-based investment firm, supports entrepreneurs building transformative companies outside of Silicon Valley through its family of funds—Rise of the Rest Seed Fund, Revolution Ventures, and… Read More
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