President Biden’s proposed budgetary plan may make it difficult to meet his campaign promise never to raise taxes on those making $400,000 a year or less. According to some experts from the Tax Policy Center, Biden’s proposal to increase the capital gains tax may mean that about … Read More
United States Tax Court, No. 17291–07, February 1, 2010 KEY QSBS TAKEAWAY(S): In Natkunanathan v. Commissioner, the taxpayer misused the definition under §1202(f) and argued stock options are equivalent to the sale or exchange of stock. Another key takeaway is the taxpayers failure to provide evidence that the … Read More
United States Tax Court, No. 3769-10, August 30, 2012 KEY QSBS TAKEAWAY(S): In Holmes v Commissioner, the taxpayer provided no evidence to demonstrate that they received the shares at original issuance (required as per IRC §1202(c)(1)(B)), and therefore failed to substantiate that their stock holdings qualified as QSBS. … Read More
President Biden’s capital gains tax proposal would result in hefty tax consequences for America’s wealthy, including members of Biden’s own cabinet. Biden has argued that raising capital gains rates for households making over $1 million would generate enough funding for proposed antipoverty and education programs, stoking the … Read More
The Washington State Legislature passed a bill this April that issued a capital gains tax on individual state residents. Historically, Washington’s non-existent state income tax carried over into capital gains meaning Washington investors paid zero state tax on the sale of long-term stock. When the new 7% … Read More
Stock exchange operator Nasdaq has successfully petitioned the SEC (U.S. Securities and Exchange Commission) to allow companies to raise capital through direct listings. This presents companies that have not yet debuted on the stock market with an alternative to the traditional IPO (initial public offering). Companies looking to … Read More
On September 13, 2021, the House Ways and Means committee released proposed amendments to the Build Back Better Act which would impact QSBS treatment The release of the markups to the Build Back Better Act have QSBS investors and founders worried about their eligible tax exemption. The House … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Federal QSBS Exclusions and State Tax Implications Allowing capital gains tax exclusions for Qualified Small Business Stocks (QSBS) encourages investment in US small business. QSBS laws help provide capital for these businesses … Read More
On September 25, 2014, the IRS released Private Letter Ruling (PLR 201436001), addressing whether a corporation operating in the pharmaceutical field meets the Section 1202 / QSBS criteria of being a “Qualified Trade or Business”. The company in question in this PLR: works with pharmaceutical clients to commercialize experimental … Read More