What is QSBS? QSBS stands for “Qualified Small Business Stock” and is regulated by the Internal Revenue Service (IRS) under code Section 1202. It offers tax benefits to accredited investors, investment funds, employees, and founders on a federal level and in some cases also a state level. … Read More
Preparation is essential when it comes to just about everything, including prep for the tax season ahead. This year may include changes to your tax preparation and filing if you had a QSBS gain. Additionally, new questions may arise about tax filing and the pending changes … Read More
“Because of this bill, start-ups and small businesses will now have access to a big, new pool of potential investors -- namely, the American people.” - President Barack Obama during the signing of the JOBS Act, April 5, 2012 The Jumpstart Our Business Startups (JOBS) Act paved the way … Read More
A New York Times article published on December 28th, 2021, by Jesse Drucker exposed various practices that contort the Qualified Small Business Stock (QSBS) tax exemption. The QSBS tax benefits were originally put in place to support the startup ecosystem, bolster job creation, and contribute to the … Read More
The rise of venture capital investment opportunities on the national and global stage has created a need for early-stage investment platforms. These investment platforms and firms offer a centralized environment for investors to pool venture capital. Early-stage investing firms are already investing in many hopeful and promising … Read More
Proposed legislation making its way through the Senate has the potential to significantly lower the tax benefits of investing in the startup ecosystem. However, some accountants, financial advisors, and investment experts think with some perceptive, preemptive planning, many investors may still be able to reap the benefits … Read More
California, New Jersey, and D.C. aren’t the only states in the QSBS news as of late— Arizona is making some headlines. For several weeks, Senator Kyrsten Sinema of Arizona and Senator Joe Manchin of West Virginia stood against the BBBA as it recently worked its way through … Read More
It’s no secret to anyone looking close enough that startups in the tech industry are growing exponentially. In response to this thriving startup ecosystem, many venture investment groups have been created to aid investors in managing their investment capital. One tech startup company turned investment platform is Carta … Read More
Investors and the collective startup community remain hopeful that QSBS tax exemptions will remain intact after Democratic Senator Joe Manchin of West Virginia confirmed his decision to oppose the Build Back Better Act (BBBA). Senator Manchin expounded on the details of his opposition to the bill on … Read More
How Early-Stage Investors Feel About the Proposed BBBA Gillian Tett, editor-at-large of Financial Times, shared her stance on the stark divide between the “haves” and the “have nots” of the investment universe. Early-stage investors are left feeling vulnerable by the proposed Build Back Better Act (BBBA), while … Read More