QSBS Basics

Does the Biden tax policy and stimulus support the QSBS exemption?

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Maybe the best place to look to predict the Biden administration’s approach to QSBS are the policies enacted under the Obama administration.

The Obama administration enacted two pieces of legislation impacting QSBS:

  • Small Business Jobs Act of 2010 (“2010 SBJA”) – prior to 2010, the QSBS exclusion was raised to 75% for QSBS acquired after February 17, 2009.  The 2010 SBJA included a provision amending Section 1202 to permit the exclusion of 100% of capital gains for QSBS acquired between September 28, 2010 and December 31, 2010. 
  • Protecting Americans from Tax Hikes Act of 2015 (“the PATH Act) – Subsequent to the 2010 SBJA, the PATH act permanently extended the 100% exemption for all QSBS acquired after September 27, 2010.

Should we view the fact that the Obama administration increased the QSBS capital gains tax exclusion to 100% as a sign that the Biden administration will continue to support QSBS exclusions?  Let us know your thoughts.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About QSBS Expert

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.