Update as of August 16, 2022 The Inflation Reduction Act was signed into law on August 16, 2022, excluding the curtailment of QSBS that was included in the House's version of the Act (the "Build Back Better Act"). As a result, no changes were made to IRC … Read More
The release of the markups to the Build Back Better Act have QSBS investors and founders worried about their eligible tax exemption. The House of Representatives has made edits to the plan, including the American Jobs Plan and the American Families Plan, in order for the budget … Read More
If the Section 138150 amendment to IRC Section 1202 (QSBS) passes, taxpayers may no longer be able to claim a 100% capital gains exemption if: The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 - orSuch taxpayer is a trust or estate While most early stage company … Read More
What’s in the Build Back Better bill, and why will it cost $3.5 Trillion? The Democratic supported bill includes a host of items, including… Monthly payments to parents Universal prekindergarten Free community college Paid family leave According to a recent article (found here), “Democrats envision the bill as their last, best chance … Read More
A lot of people want to know: given the proposed changes to QSBS are intended to increase tax dollars, how much more money will be raised? In 2019, the Joint Committee on Taxation estimated that the tax revenue lost from Section 1202 ranged between $1.1B and $1.3B per … Read More
Startups need capital, therefore, startups need investors. As a result, startups (and their founders) absolutely LOVE qualified small business stock. Compared to an investment in an index fund or a publicly traded company, an investment in a small business has the potential to generate a return with … Read More
In the original proposal for Biden’s Build Back Better plan, it was stated that the federal exclusion for certain qualified small business stock would still apply if the proposal passed, but there is a different story today as the House of Representatives released a partial revision of … Read More
In a word, no. Even if Build Back Better passes (and there is no guarantee that it will), QSBS will still remain in place, albeit with a few changes. However, specific QSBS stakeholders may be affected. First off, taxpayers a) earning less than $400K in gross adjusted income, … Read More
Unsurprisingly, the Republicans are staunchly opposed to the Build Back Better Act. A recent Reuters article (found here), says that, “Republicans, who have been adamant in defending their 2017 tax cuts and argue that the tax hikes would hurt businesses and kill jobs. Democrats argue the Trump … Read More
Although the initial proposal for President Biden’s Build Back Better Plan included language that would protect QSBS status and benefits, a recent revision of the proposal by the House of Representatives would affect certain taxpayers if passed. The document titled, General Explanations of the Administration’s Fiscal Year 2022 … Read More