QSBS is popping up more and more these days, whether in M&A transactions, IPOs, regulatory changes, politics, entrepreneurship and in many more areas. Here are some of the recent developments we are following.
89% of Americans Feel The US Should Do More to Incentivize Small Businesses (5/10/2022) - Small businesses and startups create new markets and transform old ones, inspiring competition, driving innovation, and creating the job growth essential to growing the US economy. However, only 20-30% of early-stage tech startups succeed and most individuals willing to invest in these companies lose their money for the potential to collect on the significant tax… Read More Claim Your QSBS Gains With Confidence This Tax Season in 3 Steps (4/13/2022) - Did you know gains on your stock may be 100% tax exempt? Qualified Small Business Stock (QSBS) is a tax provision (IRC Section 1202) that incentivizes capital investments in strategic innovation sectors to boost economic growth. QSBS can provide eligible investors up to a 100% capital gains tax exclusion if qualifying criteria are met –… Read More Does Knowledge of Tax Incentive Eligibility Drive Investor Behavior? (4/6/2022) - A unique tax provision, IRC Section 1202 “Qualified Small Business Stock (QSBS)”, was created to incentivize risky capital investments in the innovative startup and early-stage business marketplace in the United States. In the same manner that QSBS tax incentives jumpstart the US national economy and generate strategic job creation, similar tax relief incentives are available… Read More Leaders in the Startup Ecosystem Appeal to Congress to Preserve QSBS Tax Law (3/25/2022) - Ahead of President Biden releasing his proposed FY 2023 budget, founders, entrepreneurs, and vocal leaders in the startup marketplace sent a letter on February 16th, 2022, to Nancy Pelosi, Kevin McCarthy, Charles Schumer, and Mitch McConnell. The appeal entreats congressional lawmakers to preserve and protect QSBS and its significant impact on the incentivization of the… Read More March 2022 Q&A (3/2/2022) - Can the redemption of outstanding convertible notes be considered a disqualifying stock redemption from a Section 1202 / QSBS perspective? Read More Thinking Ahead to Filing Your 2021 Taxes if You Had a QSBS Gain (1/21/2022) - Preparation is essential when it comes to just about everything, including prep for the tax season ahead. This year may include changes to your tax preparation and filing if you had a QSBS gain. Additionally, new questions may arise about tax filing and the pending changes to the QSBS tax exemption codes in the proposed… Read More Are the Practices by Some, Enough of a Reason to Change QSBS for Everyone? (1/13/2022) - A New York Times article published on December 28th, 2021, by Jesse Drucker exposed various practices that contort the Qualified Small Business Stock (QSBS) tax exemption. The QSBS tax benefits were originally put in place to support the startup ecosystem, bolster job creation, and contribute to the rebuilding of the national economy. However, these new… Read More Ways Financial Advisors are Suggesting to Plan for Potential Changes to QSBS (1/7/2022) - Proposed legislation making its way through the Senate has the potential to significantly lower the tax benefits of investing in the startup ecosystem. However, some accountants, financial advisors, and investment experts think with some perceptive, preemptive planning, many investors may still be able to reap the benefits of capital gain tax exemptions even if the… Read More
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This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.