Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Aggregate gross assets include: CashAggregate adjusted basis of other property held by the corporation. (Section 1202(d)(2)) QSBS considers the tax basis of assets, which are generally reported on Schedule L of a corporation’s tax … Read More
Section 1202 Read More
Alternative Minimum Tax (AMT) Fair Market Value (FMV) Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Many actions or decisions companies routinely make can jeopardize qualified small business stock (QSBS) status. Suppose after starting your company and qualifying for all of the criteria for QSBS, you meet Charlie, … Read More
The QSBS “Active Business Requirement” requires that “at least 80 percent (by value) of the assets” of the corporation are used in the “active conduct of one or more qualified trades or businesses1 during substantially all of the taxpayer’s holding period for such stock” (Section 1202 (2)(A)). … Read More
Qualifying QSBS investments are not hard to find but they can be hard to maintain. A few key caveats to consider when navigating your investment tax planning for follow on investments is (i) the QSBS asset test, (ii) the timeline, and (iii) the tax exclusion. The QSBS … Read More
Navigating the tax code is tricky with just one Section but adding a second is a whole other ball game. The good news is that there is nothing that changes when reporting a traditional Section 1202 gain as opposed to a Section 1202 gain from a Section … Read More
Already a taxpayer needs to tread lightly when reporting a Section 1202 gain from the sale of QSBS on their tax return, but reporting a Section 1045 rollover(s) can throw a curveball at their tax accountant. The same as a normal QSBS transaction the taxpayer needs to … Read More
Just because the Internal Revenue Service (IRS) does not require the taxpayer to provide any documentation when electing the Section 1202 capital gains tax exclusion on the sale of QSBS, does not mean that you don't want to have your documentation in order. Prior to the … Read More
Alternative minimum tax (AMT) is an "alternative" tax for people who are considered having higher income and was passed by congress in 1969 as a check to make sure taxpayers were not slipping out of their fair share of taxes. AMT recalculates taxable income by excluding some … Read More