Qualifying for Exclusion: How QSBS was Acquired

As noted in this article, the QSBS tax exclusion has increased several times since first implemented in 1993.  Therefore, “when” QSBS was acquired impacts the magnitude of the potential tax exclusion.  Additionally, “how” the QSBS was acquired impacts whether or not the stock is eligible for QSBS tax exclusion.

The definition of QSBS per Section 1202 (c)(1)(B) includes that “such stock is acquired by the taxpayer at its original issue (directly or through an underwriter).

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

About QSBS Expert

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.