ALX Oncology is a clinical-stage immuno-oncology company focused on helping patients fight cancer by developing therapies that block the CD47 checkpoint pathway and bridge the innate and adaptive immune system. Our lead candidate, ALX148, is a next generation CD47 blocking therapeutic that combines a high-affinity CD47 binding domain with an inactivated proprietary Fc domain. We have developed a new approach to CD47 blockade that is designed to maximize clinical activity and minimize toxicities.
Please note, it is important to assess the company’s business activities against Section 1202(e)(3) which specifies certain industries that are not considered a “qualified trade or business.”
A C corporation is a qualified legal entity for QSBS.
2015
Exemption Level
Given the Company was incorporated after September 27, 2010, all shares could be eligible for up to a 100% tax exclusion if the other QSBS criteria are met.
Any individual owning stock purchased or received directly from the company could potentially be eligible for the QSBS capital gains tax exclusion or the Section 1045 gain rollover if the QSBS standards as per IRC Section 1202 were met at the time of issuance.
In order to assess whether stock issued previously may qualify, the Company would also have to have not taken actions that invalidate QSBS status such as a certain level of redemptions, and would have to satisfy the active business requirement.
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Validate QSBS EligibilityThis article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.