According to Section 1202, an individual must receive QSBS either directly from the issuing company or through a gift or inheritance. Partnerships or LLC are allowed to transfer QSBS to a partner but not vis versa. A partnership or LLC is not a stand-alone entity but a … Read More
If a divorce were to occur and the QSBS was divided between the two individuals it would be treated as if each individual had QSBS from the day it was issued. The divorce actually creates two separate exclusions, one for each spouse. For example, each individual would … Read More
QSBS purchased on or after September 28, 2010, is 100% excluded from capital gains taxes, net investment income taxes (NIIT), and alternative minimum taxes (AMT) as long as the QSBS gains do not exceed the exclusion cap. Gains over the exclusion cap will be subject NIIT and … Read More
QSBS purchased after September 28, 2010, is eligible for a $10M or 10x the initial investment tax exclusion on 100% of capital gains taxes, alternative minimum taxes (AMT), and net investment income tax (NIIT). Even though NIIT was not established until January of 2013, QSBS purchased before … Read More
As an investor taking on risky investments in qualified small businesses you want to maximize your potential gains by leveraging the tax incentives written for you. Your stock may be eligible for a 100% capital gains tax exclusion. QSBSExpert is here to help! What Businesses Qualify for QSBS?Can … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform The QSBS exclusion is $10M or 10x the initial investment for each QSBS issuer whether you are married or not. Under Section 1202(b) if the taxpayer is married but filing jointly … Read More
Under IRS Top No. 409 a taxpayer has a capital gain for the amount received over the adjusted basis of their exchanged property. This gain could be short or long-term depending on the holding period. Section 1202 states "the adjusted basis of any property contributed to the … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform The IRC Section 1202 does not explicitly address transfers to trusts, but it can be implied that if the QSBS transfer is considered donative the QSBS will maintain its holding period … Read More
Section 1202(f) states "If any stock in a corporation is acquired solely through the conversion of other stock in such corporation which is qualified small business stock in the hands of the taxpayer then (1) the stock so acquired shall be treated as qualified small business stock … Read More
If you have recently sold your QSBS with a realized gain before the five year holding period has concluded you may want to elect the Section 1045 rollover. After the stock is sold you have 60 days to reinvest your QSBS sale proceeds into one or more … Read More