Gains & Business Sales
Qualified Small Business Stock (QSBS)
- Typical userFounders and early investors
- IRS scrutinyGreen/Yellow
- Sponsors1
Overview
Section 1202 may let you exclude part or all of the gain when selling stock in a qualifying small business.
IRS scrutiny
Generally accepted, with some areas where the IRS looks closely.
Common questions
How much gain can be excluded on qualified small business stock bought after July 4, 2025?
50% after three years, 75% after four years and 100% after five years. The per-company cap is the greater of $15 million (reduced by gain excluded in earlier years) or 10 times the adjusted basis of the stock, and the company's gross assets generally must not exceed $75 million.
Sponsors that offer this strategy
- Valur, Inc. Unclaimed 54/100 · Weak evidence Public record
Advisors who offer this strategy
- FBT Gibbons Unclaimed Law firm Public record
- Holland & Knight Unclaimed Law firm Public record
- Hone Maxwell LLP Unclaimed Law firm Public record
- Jackson Walker LLP Unclaimed Law firm Public record
- RSM US LLP Unclaimed CPA and advisory firm Public record
Education only; not tax, legal or investment advice. Listing here is not a recommendation.