The answer is maybe.... because there are so many layers and nuances that make the tax code confusing. If you are unfamiliar with QSBS it stands for Qualified Small Business Stock and is regulated under Section 1202 of the IRC tax code. In short, QSBS is an … Read More
Suppose ABC Corp hired a CFO and granted them 5% of the employee stock option pool that vests over 2 years. At the time of the granting and vesting the company qualified as a Qualified Small Business and therefore the stock and stock options qualified as … Read More
To pin down if your stock options qualify for QSBS, whether exercised or not, you should first run through the QSBS criteria to ensure that the underlying stock is QSBS qualified. Explore the basics of QSBS here. If your company recently had a round of financing, the … Read More
https://www.youtube.com/watch?v=hg1Uk60rBsc Wouldn't it be nice if every time you purchased something for your business you could just write it off and the government pays for it? That's what David Rose thought in Schitt's Creek along with a lot of taxpayers in the US right now. (if you haven't … Read More
A famous quote by Barry Goldwater "the income tax created more criminals than any other single act by the government". This is true in many cases as the IRS estimates that there was a total of $1.8B in tax fraud in 2019. There are certain sections of … Read More
If you are an individual investor, an employee holding stock options, founder, investment fund, or even a tax advisor you can or can help your clients realize huge tax savings by becoming familiar with an overlooked section of the tax code. Section 1202 allows the above stakeholders … Read More
Like any investment, investors should perform proper diligence on investments in Qualified Small Business Stock. Most early stage businesses do not survive past the first couple of years, and while capital losses may qualify for Section 1244 deductions, the most ideal scenario is to have a capital … Read More