Are you QSBS Eligible?
Check your QSBS potential today! Click one of the following options to get started:
5 keys to qualify for the
QSBS tax exemption
We help you navigate these
requirements to unlock tax savings.
Stock has to have been issued after August 10, 1993 to be QSBS eligible, and may be eligible for either a 50%, 75%, or 100% capital gains tax exclusion depending on when the stock was issued.
To qualify for the QSBS exclusion, stock needs to have been held for at least 5 years. The holding period start date varies based on security type (i.e. for stock options the holding period starts when the options are exercised as opposed to when they were granted).
If stock is sold before the 5-year mark, it may be eligible to be rolled over into other QSBS stock and continue to count towards the 5-year period, pursuant to IRC Section 1045.
At the time stock is issued, the company must be a domestic US C-Corporation with less than $50M in “gross assets” (i.e. tax basis of assets).
Active Business Requirements demonstrate that the company primarily utilized its assets for qualified purposes. This is demonstrated through various tests.
The Company must not have repurchased a “significant” amount of stock during the period one year before and one year after issuance. Particular shareholders (or related parties) looking to claim the exclusion must not have had their stock repurchased by the company within 2 years of when their stock was issued.