If the Section 138150 amendment to IRC Section 1202 (QSBS) passes, taxpayers may no longer be able to claim a 100% capital gains exemption if:
- The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 – or
- Such taxpayer is a trust or estate
While most early stage company founders likely make less than $400,000, many of their biggest supporters and investors likely make greater than $400,000 – for example Venture Capital Limited Partners. Will changes to QSBS negatively impact investor’s willingness to fund early stage ventures?
CapGains Inc. is following this legislation closely and is forming a coalition to stay abreast of developments – keep up to date here.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.