Investment Fund

Will the Company I hold stock in perform a QSBS analysis for me?

There exists great variability in how companies handle requests from shareholders regarding QSBS questions.  Since both the Company and the individual shares held need to qualify, there are simply logistical challenges in companies evaluating every shareholder’s situation.  For example, maybe the company was a Qualified Small Business … Read More

QSBS Convertible Note

"Never invest in anything that eats or needs repairing." - Billy Rose Putting Section 1202 QSBS (i.e. qualified small business stock) and convertible note ("QSBS Convertible Note") in the same sentence is a recipe for an "investment needing repaired". If you have stumbled upon this page there are … Read More

Forming a Management Holding Company for QSBS

Another avenue could be to create a management holding company where the insurance, finances, and payroll are managed. According to the AICPA, a qualified small business for Section 199A QBI can be a management holding company. Tax accountants and lawyers have been looking to Section 199A for … Read More

QSBS Stock Acquisition with a Holding Company

The graphic below illustrates the ownership structure after 100% of the stock is acquired in a qualified small business. The PE fund would form a holding company that would issue QSBS to the PE fund after infusing capital into the holding company. The holding company would then … Read More

Structuring QSBS Transactions

Purchasing existing stock or assets in a company does not qualify as qualified small business stock (QSBS). QSBS has to be newly issued stock and qualify as a Section 1202 qualified small business. Refer here for details on what constitutes a qualified small business. Section 1202 of the … Read More

QSBS for Investors in Investment Funds

As a investor in an investment fund, it is imperative to know what the tax implications may be for when you receive your pass-through distributions from the investment fund.  QSBSExpert is here to help! What Businesses Qualify for QSBS?Can My QSBS Gain(s) Be Excluded from Taxes?What are the … Read More