Just because 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, does not mean that you don't want to have your documentation in order. Prior to the … 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
Reporting of the Section 1202 gain depends on (a) the tax form (b) whether it is owned through a pass-through entity, and (c) the timing of payments received from the sale of the QSBS. There are two forms (i) Form 1099-DIV and (ii) Form 2439. If the … Read More
Whatever hat you are wearing (i.e. accredited investor, founder, employee, or contractor) you do not have to take any required steps when acquiring QSBS at the issuance date. Although legally there are no required steps the QSBS holder should still make an organized checklist before acquiring the … Read More
Under Section 1202 there are no requirements for applying for QSBS the day stock is purchased or keeping records over the course of the holding period. Even though you do not have to keep records while holding the QSBS you should. It would be maniacal to try … Read More