QSBS Terminology

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

What Is Fair Market Value?

Fair market value (FMV) is the price in terms of cash equivalents that property would be sold for between a willing and able buyer and seller. The transaction must be considered arm's length, meaning that it was (i) not between related parties for a low ball amount … Read More

What is an Accredited Investor?

An investor who meets the requirements of an "accredited investor" under Rule 501 of Regulation D by the Securities and Exchange Commission (SEC) is legally allowed to invest in venture capital funds, hedge funds, debt securities, or private equity. On August 26, 2020, there were amendments to … Read More

What is QSBS?

QSBS stands for “Qualified Small Business Stock” and is regulated by the Internal Revenue Service (IRS) under code Section 1202, offering tax benefits to accredited investors, investment funds, employees, and founders. QSBS is a tax benefit on a federal and in some cases also extends to a … Read More