Are My Capital Gains Recognized on the Trade or Settlement Date?
There are two related and important dates when you buy or sell stock.
The trade date is the date when you place an order to buy or sell. The settlement date is the date that the cash or shares … Read More
Maximizing gains from Qualified Small Business Stock (QSBS) involves an understanding of the applicable tax laws. One key factor is the time period the IRS is allotted to retroactively audit reported QSBS, also known as the statute of limitations.
What is a Statute of Limitations?
Broadly speaking, a statute … Read More
83(b) Election Basics
An 83(b) election allows an individual to accelerate the date on which restricted shares are subject to ordinary income taxes, and potentially pay a lower tax now versus a higher tax in the future. A founder or an employee of a startup who receives restricted … Read More
If there was a simple “yes or no” equation for this question, this would be a very short article. The reality is more complex, since individual circumstances will impact how companies handle QSBS-related requests. Because both the company and the individual shares held need to qualify, this … Read More
Qualified Small Business Stock (QSBS) is a tax incentive that I have found few are aware of and even less understand. Once you start to unpack it, you realize its importance if you spend time investing in early stage companies as it can lead to a 100% … Read More
As a holder of qualified small business stock (QSBS) it is important to know what steps to take not only when you report the Section 1202 exclusion on your taxes but also when the QSBS is issued. QSBS for some is a hidden secret embedded within the … Read More
Navigating the tax code is tricky with just one Section but adding a second is a whole other ball game. The good news is that there is nothing that changes when reporting a traditional Section 1202 gain as opposed to a Section 1202 gain from a Section … Read More
Already a taxpayer needs to tread lightly when reporting a Section 1202 gain from the sale of QSBS on their tax return, but reporting a Section 1045 rollover(s) can throw a curveball at their tax accountant. The same as a normal QSBS transaction the taxpayer needs to … Read More
The Internal Revenue Service (IRS) does not require the taxpayer to provide any documentation when electing the Section 1202 capital gains tax exclusion on the sale of QSBS, but the IRS does require documentation in the case of an audit. Section 1202 can be thought of as … Read More
As a holder of qualified small business stock (QSBS), it is important to know what steps to take not only when you report the Section 1202 exclusion on your taxes but also when the QSBS is issued. QSBS for some is a hidden secret embedded within the … Read More