In a recent article about the state of pre-seed valuation, Brett Calhoun of ScaleVC discusses the challenges of valuing pre-seed startups and how to avoid overvaluation. Calhoun notes that pre-seed startups are often overvalued because they have little to no track record and are therefore difficult to … Read More
Upon the collapse of Silicon Valley Bank, First Republic Bank and other banks during 2023, many companies moved cash which may pose risks for QSBS eligibility in various ways. Excess Cash or Other Holdings (perhaps from drawing down on lines of credit) may cause a company to fail … Read More
Qualified Small Business Stock (QSBS) provides a great incentive to fuel innovation in the US, by providing eligible shareholders with an up to 100% capital gains tax exclusion. QSBS helps to drive capital to endeavors that are “too risky” for many to fund, but such early-stage businesses … Read More
In a TaxNotes article from April 10, 2023, Nathaniel S. Pollock of SouthBank Legal examines recent litigation involving QSBS and notes that the case may be the "tip of the QSBS litigation iceberg". To date, QSBS litigation and other rulings have been limited to few cases, a handful … Read More
The House Ways and Means Committee released former President Donald Trump’s tax returns for 2015 – 2020 on December 30, 2022 - see the returns in the Attachment E link here. We wondered whether Trump claimed QSBS on any investment gains during these years? Where to look? … Read More
I consider Qualified Small Business Stock (QSBS) to be an example of the government utilizing tax policy wisely – to help spur economic growth and drive innovation. It therefore came as a shock when in late 2021 the Build Back Better Act proposed a curtailment to QSBS. … Read More
Small businesses and startups create new markets and transform old ones, inspiring competition, driving innovation, and creating the job growth essential to growing the US economy. However, only 20-30% of early-stage tech startups succeed and most individuals willing to invest in these companies lose their money for … Read More
Did you know gains on your stock may be 100% tax exempt? Qualified Small Business Stock (QSBS) is a tax provision (IRC Section 1202) that incentivizes capital investments in strategic innovation sectors to boost economic growth. QSBS can provide eligible investors up to a 100% capital gains … Read More
A unique tax provision, IRC Section 1202 “Qualified Small Business Stock (QSBS)”, was created to incentivize risky capital investments in the innovative startup and early-stage business marketplace in the United States. In the same manner that QSBS tax incentives jumpstart the US national economy and generate strategic … Read More
Ahead of President Biden releasing his proposed FY 2023 budget, founders, entrepreneurs, and vocal leaders in the startup marketplace sent a letter on February 16th, 2022, to Nancy Pelosi, Kevin McCarthy, Charles Schumer, and Mitch McConnell. The appeal entreats congressional lawmakers to preserve and protect QSBS and … Read More