What is a C Corporation? A C corporation is a type of business structure in which the company is owned by the shareholders. These shareholders have the power to elect a board of directors who help to make governance decisions around how the company is operated. Notably, corporations … Read More
Cannabis Investors Need to Look Into QSBS Those looking to break into the growing cannabis industry through entrepreneurship would be wise to familiarize themselves with section 1202 of the IRC, the capital gains exclusion which allows for holders of QSBS to take the $10,000,000 tax-free. The cannabis industry attracts … Read More
Why Fintech and Insurtech Companies Should Look Into Qualified Small Business Stocks Buying qualified small business stock (QSBS) makes for a key part of a robust investment strategy because it facilitates a capital gains tax exclusion. The concept is simple; if you invest in a qualified small business, … Read More
According to section 1202 of the internal revenue code (IRC), “the term ‘qualified small business stock’ means any stock in a C corporation which is originally issued after the date of the enactment of the Revenue Reconciliation Act of 1993 if (A) as of the date of … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Section 1045 of the tax code defines how to perform a qualified rollover of Qualified Small Business Stock, or QSBS. Here are the basics of QSBS. A business must meet three qualifications to … Read More
Federal QSBS Exclusions and State Tax Implications Allowing capital gains tax exclusions for Qualified Small Business Stocks (QSBS) encourages investment in US small business. QSBS laws help provide capital for these businesses while offering a savvy tax strategy for investors who want to minimize capital gains taxes. Investors who … Read More
In addition to the associated tax cuts, another benefit to American taxpayers from the TCJA of 2017 was the enactment of federal opportunity zones. According to opportunityzones.hud.gov, “Opportunity Zones are economically distressed communities, defined by individual census tract, nominated by America’s governors, and certified by the U.S. Secretary … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Simple Agreements for Future Equity, otherwise known as SAFEs, exist thanks to the startup accelerator Y-Combinator’s 2013 innovation. With a SAFE, an investor makes a cash investment in a company, but the … Read More
United States Tax Court, Nos. 930–07, 1384–07, 13303–07, 29011–08, 29090–08, January 19, 2012 KEY QSBS TAKEAWAY(S): In Owen v. Commissioner, the taxpayer met the 60–day requirement of section 1045(a)(1) because the stock purchase agreement transaction was signed on June 17, 2002, and the sold Family First Companies shares--amounting to … Read More
United States Tax Court, No. 17291–07, February 1, 2010 KEY QSBS TAKEAWAY(S): In Natkunanathan v. Commissioner, the taxpayer misused the definition under §1202(f) and argued stock options are equivalent to the sale or exchange of stock. Another key takeaway is the taxpayers failure to provide evidence that the … Read More