QSBS Related Tax Code Sections
Section 1202 Read More
QSBS Basics
QSBS Terminology
Alternative Minimum Tax (AMT) Fair Market Value (FMV) Read More
Protecting QSBS Status: Stock Redemptions
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
Qualifying as QSBS: Active Business Requirement
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
What to Consider With Follow on Investments to Maintain the QSBS Tax Exclusion
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
How Do I report a Section 1202 QSBS Gain from a Section 1045 Rollover?
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
How Do I report a Section 1045 Rollover on My Taxes?
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
What Documentation Do I Have to Provide for QSBS?
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
What is Alternative Minimum Tax?
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
How do I report QSBS on my Taxes?
As a holder of qualified small business stock (QSBS), it is important to know what steps to take not only when you report the Section 1202 exclusion on your taxes but also when the QSBS is issued. QSBS for some is a hidden secret embedded within the … Read More