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.
What’s the change?
- The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 – or
- 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).
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.