Part of the genius of QSBS qualifications, regulations, and incentives is how they encourage the recycling of capital into the early-stage business ecosystem to drive innovation, create jobs, and strengthen the national economy. This effective reuse of QSBS eligible investments is made possible through the benefits laid … Read More
Have you already sold or plan to sell your QSBS stake before the 5-year holding period expires?5-Year Holding Period for QSBS Eligibility60 DAYS TO ROLLOVER 1st Qualified Small Business 2nd Qualified Small Business Rollover targetsIf you are a stockholder or small business owner stuck in this dilemma, the IRC Section 1045 can help. Under this … Read More
The implementation of advanced planning strategies is to: (1) reduce or eliminate capital gains tax; (2) reduce future estate tax; and (3) increase asset protection from creditors and lawsuits should be on every founder, owner, and investor’s mind. All strategies revolve around time and the amount of equity … Read More
Navigating the tax code is tricky with just one Section but adding a second is a whole other ball game. The good news is that there is nothing that changes when reporting a traditional Section 1202 gain as opposed to a Section 1202 gain from a Section … Read More
Already a taxpayer needs to tread lightly when reporting a Section 1202 gain from the sale of QSBS on their tax return, but reporting a Section 1045 rollover(s) can throw a curveball at their tax accountant. The same as a normal QSBS transaction the taxpayer needs to … Read More
Section 1045 states that any "gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds the cost of any QSBS purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by any portion … Read More
Scenario I: QSBS exchanged for QSBS If QSBS was exchanged for other QSBS under a Section 351 transaction or a Section 368 Reorganization than the built-in gain on the transfer is eligible to be deferred under Section 1045 as well as any gain on the sale of the … Read More
If you have recently sold your QSBS with a realized gain before the five year holding period has concluded you may want to elect the Section 1045 rollover. After the stock is sold you have 60 days to reinvest your QSBS sale proceeds into one or more … Read More