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.
Scott Galloway’s Tax Optimization Strategies Unpacked (7/7/2024) by Eleanor Dulam - Navigating the intricate world of tax optimization demands a strategic approach to financial management. Scott Galloway, Professor of Marketing at NYU Stern School of Business and co-host of the enlightening podcast "Prof G Markets" with Ed Elson brings a unique blend of academic insight and practical wisdom to the forefront. Beyond his academic accolades, Galloway… Read More
Tax Court Ruling (Ju v. United States) Shows When Claiming QSBS, Documentation is Key (4/8/2024) by Eleanor Dulam - A recent U.S. Court of Federal Claims decision, Ju v. United States, has highlighted the importance of meticulous recordkeeping for taxpayers seeking to exclude capital gains from the sale of qualified small business stock (QSB) under Section 1202. Section 1202 offers a significant tax exclusion to incentivize innovation: shareholders who hold QSB stock for more… Read More
Sweetening VC Secondaries with QSBS (3/5/2024) by Jonathan Fish - In December 2023, the Venture Capital Journal examined whether 2024 would be the year of VC secondaries. A confluence of factors makes the timing ripe for such deals, and the expected deal activity is already panning out. Secondary transactions are typically transacted at discounts to the fair market value, however the up to 100% capital… Read More
IRS Halts PLRs on “Active Business” Requirement for QSBS (2/4/2024) by Eleanor Dulam - IRC Section 1202 offers little guidance as to what is meant by certain excluded trades or businesses outlined in Section 1202(e) - such as “health services”, “consulting”, “engineering”, etc. As such, shareholders wondering whether the company they hold stock in is in a Qualified Trade have sought clarification from the IRS. The IRS has issued… Read More
Unraveling the QSBS Maze: An Interactive Guide to Qualified Trades (12/31/2023) by QSBS Expert - Shareholders in certain companies have requested clarification, for which the IRS issued Private Letter Rulings (PLRs) to clarify if their companies are indeed operating in Qualified Trades for QSBS purposes. The Interactive Guide to Qualified Trades or Businesses for QSBS Qualification is an online resource curated by Hanson Bridgett LLP, offering a comprehensive summary of… Read More
Wisconsin Adopts QSBS! (11/15/2023) by Jonathan Fish - You may have noticed some more blue on our state QSBS map. As of October 25, 2023, Wisconsin allows for the full QSBS exclusion! Governor Tony Evers signed Assembly Bill 406 which modified Wisconsin's conformity to Federal QSBS, retroactive to QSBS gains realized after December 31, 2018. See the Governor's office press release here. Prior… 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.