Avidity Biosciences develops oligonucleotide-based therapies called AOCs designed to overcome the current limitations of oligonucleotide therapies in order to treat a wide range of serious diseases. Their proprietary AOC platform to designs, engineers and develops therapeutics that combine the tissue selectivity of monoclonal antibodies (mAbs) and the precision of oligonucleotide-based therapies in order to access previously undruggable tissue and cell types and more effectively target underlying genetic drivers of diseases.
Please note, it is important to assess the company’s business activities against Section 1202(e)(3) which specifies certain industries that are not considered a “qualified trade or business.”
A C corporation is a qualified legal entity for QSBS.
2013
Exemption Level
Given the Company was incorporated after September 27, 2010, all shares could be eligible for up to a 100% tax exclusion if the other QSBS criteria are met.
Any individual owning stock purchased or received directly from the company could potentially be eligible for the QSBS capital gains tax exclusion or the Section 1045 gain rollover if the QSBS standards as per IRC Section 1202 were met at the time of issuance.
In order to assess whether stock issued previously may qualify, the Company would also have to have not taken actions that invalidate QSBS status such as a certain level of redemptions, and would have to satisfy the active business requirement.
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Validate QSBS EligibilityThis article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.