A recent article by Joe Wallin on The Startup Law Blog highlights an important point that many founders and investors overlook: reaching the five-year QSBS mark does not lock the tax benefit in place. As Wallin explains, the active business requirement continues for "substantially all" of the … Read More
The warning from Treasury was unusually direct. Kenneth Kies, Treasury assistant secretary for tax policy and acting IRS chief counsel, left little doubt about the government’s posture when he said, “Let me just warn you: We don’t like stacking,” adding, “Just keep an eye out for that.” At … Read More
Treasury is “working diligently” on regulations tied to the Qualified Small Business Stock (QSBS) gain exclusion under Section 1202, according to Bloomberg Tax. Treasury attorney-adviser Evan Adams said at the American Bar Association Tax Section’s May meeting that both the scope and timing of the project remain … Read More
A recent Tax Notes piece by Manoj Viswanathan of the University of California College of the Law, San Francisco argues that the current system for claiming the Qualified Small Business Stock exclusion places too much responsibility on the wrong party. Rather than requiring shareholders to prove Section … Read More
Navigating the intricate world of tax optimization demands a strategic approach to financial management. Scott Galloway, Professor of Marketing at NYU Stern School of Business and co-host of the enlightening podcast "Prof G Markets" with Ed Elson brings a unique blend of academic insight and practical wisdom … Read More
The private company equity market is an inherently high-risk, high-reward enterprise, a positive Return on Investment (ROI) is not guaranteed, and historically not all taxpayers have been allowed to invest. Yet investments in innovative startups are indisputable keys to moving the national economy forward and creating jobs. As … Read More
Venture capital (VC) funds operate by seeking outsized returns through investing early in companies that change the world, shake up the market, and become household names. Mutual funds and hedge funds invest in various security types, but venture capital funds focus on a distinctive type of early-stage … Read More
Investments in innovative startups are crucial to the future of our country. Yet equity investing is an inherently high-risk, high-reward venture, where a positive return isn’t always guaranteed, and taxpayers haven't always been qualified for profitable opportunities. As a result, QSBS legislation was enacted to provide incentives for … Read More
Qualified Small Business Stock (QSBS) and Opportunity Zones (OZ) are tax codes enacted to fuel the job market and spark widespread economic growth. These tax codes also incentivize regional development in strategic areas, which creates an influx of capital and accessible work opportunities. Both of these tax … Read More
Part of the genius of QSBS qualifications, regulations, and incentives is how they encourage the recycling of capital into the early-stage business ecosystem to drive innovation, create jobs, and strengthen the national economy. This effective reuse of QSBS eligible investments is made possible through the benefits laid … Read More