In January 2025, the Treasury Department's Office of Tax Analysis (OTA) released data quantifying QSBS claims. This is the first such report to quantify the volume of QSBS claims, and provides insights that can be useful in understanding the impacts of QSBS on economic activity. This study … Read More
26 U.S. Code Section 1202—“Partial Exclusion for Gain from Certain Small Business Stock,” better known as QSBS—offers plenty of upside for small businesses and investors. However, the legislation also contains a great deal of ambiguity, resulting in confusion among qualified small businesses and their investors. This uncertainty is … Read More
Detroit is no longer just the Motor City—it’s quickly becoming a formidable contender in the startup investment landscape, according to the 2024 Rise of the Rest report by Revolution. Revolution, a D.C.-based investment firm, supports entrepreneurs building transformative companies outside of Silicon Valley through its family of funds—Rise of … Read More
The venture landscape is changing. Revolution, a D.C.-based investment firm focused on backing transformative companies outside Silicon Valley, recently released its latest Rise of the Rest report, highlighting a major trend: in 2024, $16.82 billion in capital flowed beyond traditional coastal hubs. Through Rise of the Rest, Revolution's … Read More
As talks about extending the Tax Cuts and Jobs Act (TCJA) heat up, policymakers are examining different tax policy changes to help balance the budget. Yale’s Budget Lab is studying various potential focus areas and, on January 24, 2025 zeroed in on Section 1202 of the Internal Revenue … Read More
What Is QSBS Attestation? QSBS attestation is a tool investors can use to confirm a stock's eligibility for QSBS tax benefits. Think of it as a third-party validation that a company and its stock meet the specific requirements of Section 1202 of the Internal Revenue Code. While not legally required, attestation can help avoid … Read More
Qualified Small Business Stock (QSBS) has existed for over 30 years. Launched under the auspices of Internal Revenue Code Section 1202, QSBS helps support the growth of small businesses by providing tax incentives for accredited investors and funds. Meanwhile, the Tax Cuts and Jobs Act (TCJA) of … Read More
The Internal Revenue Service (IRS) has indicated that it is still working on new guidance related to Qualified Small Business Stock (QSBS) by maintaining it on the no-rule list in the newly released Revenue Procedure 2025-1. This decision means that the IRS will not issue Private Letter … Read More
If you hold qualified small business stock (QSBS), Section 1202 of the tax code allows you to eliminate up to $10 million in capital gains from federal taxation. Even better? The benefits don't stop there. You can extend these advantages across generations through strategic gifting as part … Read More