Gross Asset Tests

How do you calculate “Aggregate Gross Assets” for QSBS?

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 return (i.e. Form 1120).  The value of assets would include intangible assets such as goodwill. Basis is … Read More

Qualifying as QSBS: The “Gross Asset” Tests

In order to qualify as a “Qualified Small Business”, Section 1202 requires the stock to meet the “Gross Asset” test, whereby the “aggregate gross assets” of the corporation: Did not exceed $50 million at all times between August 10, 1993 (enactment of the Revenue Reconciliation Act of 1993) … Read More