QSBS News

Who is in line to lose most through the Build Back Better bills changes to Section 1202, QSBS?

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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:

  1. The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 – or
  2. 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.

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QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.