QSBS Expert Q&A: Defining an Eligible Domestic C-Corp The startup ecosystem and investment landscape are ever evolving. As new questions develop, the answers and solutions are not far behind. In our monthly series, our QSBS Expert team provides insights into these pressing questions in the highly nuanced realm … Read More
QSBS Expert Q&A: Section 1202 Original Issuance Qualification and Secondary Transactions The startup ecosystem and investment landscape are constantly evolving. As new questions arise, answers and solutions are not far behind. In our monthly series, the QSBS Expert team provides insights into these pressing questions in the highly … Read More
Did you know gains on your stock may be 100% tax exempt? Qualified Small Business Stock (QSBS) is a tax provision (IRC Section 1202) that incentivizes capital investments in strategic innovation sectors to boost economic growth. QSBS can provide eligible investors up to a 100% capital gains … Read More
A Decentralized Autonomous Organization (DAO) is a type of Limited Liability Company (LLC) in which there is no leading member of the organization that has majority rule. In a typical LLC, there are members who make the core decisions for the business. A DAO is different … Read More
Section 1202 limits working capital that a company may apply towards the 80% test to 50% of total assets, however the question emerges as what assets should be considered to be "working capital" assets for purposes of QSBS? Inventory is typically included as a component of working capital … Read More
President Biden released his budget proposal for the coming 2023 fiscal year on March 28, 2022. Coming off the heels of the stalled Build Back Better Act, will the President try to work elements of the BBBA into the budget? The budget proposes a new … Read More
QSBS Expert Q&A: Stock Redemptions and QSBS Regulations The startup ecosystem and investment landscape are ever-evolving. As new questions develop, the answers and solutions are not far behind. In our monthly series, the QSBS Expert team provides insights into these pressing questions in the highly nuanced realm of … Read More
The startup ecosystem and investment landscape are ever-evolving. As new questions develop, the answers and solutions are not far behind. In a new monthly series, the QSBS Expert team will be providing insight into these pressing questions in the highly nuanced realm of QSBS. Tax season is in … Read More
The vagueness of the “Qualified Trade or Business” exceptions listed in Section 1202(e)(3) have troubled “would be” QSBS shareholders and their advisors since the QSBS regulations were first introduced. Additional guidance has mostly come in the way of Private Letter Rulings, the latest of which (PLR 202114002) … Read More
“Because of this bill, start-ups and small businesses will now have access to a big, new pool of potential investors -- namely, the American people.” - President Barack Obama during the signing of the JOBS Act, April 5, 2012 The Jumpstart Our Business Startups (JOBS) Act paved the way … Read More