Qualified Small Business Stock
QSBS is one of the most powerful tax exclusions available to startup founders and early employees. Under Section 1202 of the Internal Revenue Code, gains from qualifying shares held for more than three years may be excluded from federal capital gains tax – up to $15 million or 10 times your original basis, whichever is greater. Not all stock qualifies, and the rules around eligibility, stacking strategies, and holding periods are specific. Peruse the articles below to learn whether your shares qualify for QSBS treatment and how to plan around this potentially life-changing exclusion.