Theta Lake offers security and compliance to reduce the cost of security and the risk of non-compliance with archive connectors, compliant archiving, and automatically detecting security, data loss, and compliance risks across video, voice, chat, and document content in what is shared, shown, spoken, and typed during collaboration sessions using true AI, ML, and NLP.
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.”
Entity Type
Per Section 1202, entities need to be a C Corporation or equivalent in order to issue QSBS. Refer here for further details.
Exemption Level
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.