How might other Biden tax stimulus policies impact QSBS?

Long-term capital gains are generally taxed at a maximum rate of 20% plus the 3.8% net investment income tax (NIIT).  One Biden administration proposal would replace these rates with ordinary income rates for taxpayers earning more than $1,000,000.  This could cause higher earners to pay as much as 39.6% plus the 3.8% NIIT.

From a QSBS perspective, these increased taxes could make QSBS more appealing for the high earner group, provided the gains on QSBS (acquired after September 27, 2010) continue to remain excluded from capital gains taxes for all taxpayers. 

Let us know your thoughts on how Biden administration policies may impact QSBS.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

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QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.