As more and more small business owners and investors familiarize themselves with the term QSBS, they may be eager to learn if and how they can qualify for this attractive tax incentive. Ineligible Industries Outlined under Section 1202 Instead of outlining eligible industries, Section 1202 of the IRC outlines … Read More
Complexity Surrounding the $50M Gross Asset Test At first glance, it might seem like the $50M Gross Asset Test is simple, but the reality is that in certain circumstances, it can be much more complex. For example, if a financing round has multiple closings, part of the stock … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform As investors hear more and more about the qualified small business stock tax exemptions, they may be looking at their own portfolio and assets to see where this capital gains exclusion … Read More
For most of us it is a dream to be living retirement on a beach while sipping a pina colada. If you are reading this, I hope you are not wasting your time on the beach reading about taxation, unless you think you own qualified small business … Read More
As many American taxpayers and investors familiarize themselves with Qualified Small Business Stock, they may be eager to look towards their own shares or investment opportunities to see where they can reap the benefits of this favorable tax treatment. One of the industries excluded from leveraging Section 1202 … Read More
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
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
On September 25, 2014, the IRS released Private Letter Ruling (PLR 201436001), addressing whether a corporation operating in the pharmaceutical field meets the Section 1202 / QSBS criteria of being a “Qualified Trade or Business”. The company in question in this PLR: works with pharmaceutical clients to commercialize experimental … Read More