QSBS is at risk in the Build Back Better Act legislation!

Congress is currently proposing amendments to the Build Back Better Act that would limit the QSBS exemption.

Sign-up here and join our coalition to let Congress know that this will harm innovation.

Sign Up

What’s the change?

Section 138150 would amend IRC Section 1202 (QSBS) by no longer allowing a 100% capital gains exemption for any taxpayers if:
  1. The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 – or
  2. Such taxpayer is a trust or estate


What does this mean?

The newly excluded taxpayers may still be able to claim a 50% exemption per Section 1202(a)(1). If passed, these changes would apply to sales and exchanges or or after September 13, 2021. These tax changes could have a significant impact on entrepreneurs and certain investors in the types of innovative companies driving tomorrow’s economy. 

We are putting together a coalition to stay abreast of developments in the Build Back Better Act and it’s impact on IRC Section 1202 – Qualified Small Business Stock (QSBS).

Sign up here to track the latest developments on legislation affecting QSBS:

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