QSBS Related Tax Code Sections

Section 368

(a) Reorganization (1) In general For purposes of parts I and II and this part, the term “reorganization” means— (A) a statutory merger or consolidation; (B) the acquisition by one corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a … Read More

Section 351

(a) General rule No gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control (as defined in section 368(c)) of the corporation. (b) … Read More

Section 1045 Application To Partnerships

§ 1.1045-1 Application to partnerships. (a) Overview of section.  A partnership that holds qualified small business stock (QSB stock) (as defined in paragraph (g)(1) of this section) for more than 6 months, sells such QSB stock, and purchases replacement QSB stock (as defined in paragraph (g)(2) of this section) may elect to apply section 1045. An eligible partner (as defined in paragraph (g)(3) of this section) of a partnership that sells QSB stock, may elect to apply section 1045 … Read More

Code Section 613

(a)General rule In the case of the mines, wells, and other natural deposits listed in subsection (b), the allowance for depletion under section 611 shall be the percentage, specified in subsection (b), of the gross income from the property excluding from such gross income an amount equal to any rents or … Read More

Code Section 1411

(a)In general Except as provided in subsection (e)— (1)Application to individuals In the case of an individual, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax equal to 3.8 percent of the lesser of— (A) net investment income for such taxable … Read More

Code Section 304(a)

(a)Treatment of certain stock purchases (1)Acquisition by related corporation (other than subsidiary) For purposes of sections 302 and 303, if— (A)one or more persons are in control of each of two corporations, and (B)in return for property, one of the corporations acquires stock in the other corporation from the person (or persons) so in control,then (unless paragraph … Read More

Updated Code Section 1202

(a)Exclusion (1)In general In the case of a taxpayer other than a corporation, gross income shall not include 50 percent of any gain from the sale or exchange of qualified small business stock held for more than 5 years. (2)Empowerment zone businesses (A)In general In the case of qualified small business stock acquired after the date … Read More

Rule 501 of Regulation D

§230.501   Definitions and terms used in Regulation D. As used in Regulation D (§230.500 et seq. of this chapter), the following terms shall have the meaning indicated: (a) Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of … Read More

Original Code Section 1202

Updated Code Section 1202 107 STAT. 422 PUBLIC LAW 103-66-AUG. 10, 1993 (c) EFFECTIVE DATE.-The amendments made by this section shall  apply  to  taxable  years  beginning  after  December  31, 1993. Subpart B-Capital Gain Provisions SEC. 13113. 50-PERCENT EXCLUSION FOR GAIN FROM CERTAIN SMALL BUSINESS STOCK. (Before February 17, 2009) 75-PERCENT EXCLUSION FOR … Read More