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Search Results for: what is qsbs
The Growth of Crowdfunding
Crowdfunding has significantly impacted the startup marketplace over the last several years, and there are no signs of its influence slowing down. Crowdfunding has grown into a top-of-the-list mode of equity investing. Equity crowdfunding has become a popular means for startups to share their company name, mission, … Read More
Will New Jersey’s Senators continue to support BBBA amidst State Senate passing Capital Gains Deduction Bill?
On December 20, 2021, New Jersey’s State Senate passed a bipartisan bill (S. 4127) allowing for deductions to individual income tax from the sale of certain Qualified Small Business Stock (QSBS). To qualify for the deduction in New Jersey, the stock has to satisfy the federal Section … Read More
The Value of Startup Funding for HNW Investors
The startup ecosystem is making a seismic impact on our nation's economy. It has jumpstarted economic growth, grown technological innovations, and contributed to job creation and retention. Not only that, investing in the startup ecosystem could be highly beneficial for High-Net-Worth (HNW) investors that are looking to … Read More
Early-Stage investors play a critical role in bringing innovation and research to fruition
The Build Back Better Act (BBBA) and the proposed amendment to QSBS are threatening the current way small businesses are operating today, and those who invest in these businesses are rightfully concerned. Among these stakeholders are angel investors who fund a large percentage of small businesses through … Read More
Founders and Investors Losing Out on 1202 Incentives Share a Warning in Light of BBBA
With the Build Back Better Act (BBBA) changing the way small businesses are operating and utilizing Qualified Small Business Stock (QSBS) incentives, many stories are being shared describing the reality of what could happen if these proposed amendments are enacted into law. Several members of our coalition have … Read More
EquipmentShare Shareholders may be able to claim tax-free capital gains
Resources: Company Formation, Qualified Trade or Business
Qualified Trade FAQ Which types of companies qualify as QSBs and which don't? Section 1202 defines Qualified Trades or Businesses in the negative, noting the types of businesses that are not eligible to issues QSBS. According to Section 1202(e)(3) a “qualified trade or business” is any company other than: “Any trade … Read More
Resources: Company Formation, Gross Asset Test
Gross Asset Test FAQ What is the Gross Asset Test? The QSBS “gross asset test” or “size test” requires that the aggregate gross asset value of the business must be below $50 million at all times before and immediately after the issuance of QSBS. If gross assets have ever … Read More
Resources: Company Formation, Active Business Requirement
Active Business Requirement FAQ What is the Active Business Requirement? The QSBS Active Business Requirement requires that “at least 80 percent (by value) of the assets” of the corporation are used in the “active conduct of one or more qualified trades or businesses during substantially all of the taxpayer’s … Read More