IRS audit activity regarding QSBS seems to be on the rise. During Q1 2024 we have seen multiple taxpayers receive requests for information, had QSBS claims rejected by the IRS and / or cases have gone to trial. Has the IRS challenged or rejected your QSBS claim? Let … Read More
IRS audit activity regarding QSBS seems to be on the rise. During Q1 2024 we have seen multiple taxpayers receive requests for information, had QSBS claims rejected by the IRS and / or cases have gone to trial. Has the IRS challenged or rejected your QSBS claim? Let … Read More
According to the Internal Revenue Code Section 1202 (I.R.C. §1202), investors can benefit from a substantial tax advantage through Qualified Small Business Stock (QSBS). Under this section, a complete exemption from federal capital gains taxes on profits gained from the sale of QSBS stock held for a … Read More
If you're a business owner, you may be wondering if converting your business from an LLC to a C-corporation is the right move for you. There are a number of factors to consider when making this decision, including your business's size, its stage of development, and its … Read More
The Internal Revenue Code (IRC) Section 1244 is a provision that often remains underutilized by small businesses, primarily due to lack of awareness. This provision can provide significant tax benefits, particularly in instances where business investments do not yield the expected returns. In this article, we aim … Read More
QSBS Expert Q&A: Defining an Eligible Domestic C-Corp The startup ecosystem and investment landscape are ever evolving. As new questions develop, the answers and solutions are not far behind. In our monthly series, our QSBS Expert team provides insights into these pressing questions in the highly nuanced realm … Read More
QSBS Expert Q&A: Section 1202 Original Issuance Qualification and Secondary Transactions The startup ecosystem and investment landscape are constantly evolving. As new questions arise, answers and solutions are not far behind. In our monthly series, the QSBS Expert team provides insights into these pressing questions in the highly … Read More
Did you know gains on your stock may be 100% tax exempt? Qualified Small Business Stock (QSBS) is a tax provision (IRC Section 1202) that incentivizes capital investments in strategic innovation sectors to boost economic growth. QSBS can provide eligible investors up to a 100% capital gains … Read More
A Decentralized Autonomous Organization (DAO) is a type of Limited Liability Company (LLC) in which there is no leading member of the organization that has majority rule. In a typical LLC, there are members who make the core decisions for the business. A DAO is different … Read More
Section 1202 limits working capital that a company may apply towards the 80% test to 50% of total assets, however the question emerges as what assets should be considered to be "working capital" assets for purposes of QSBS? Inventory is typically included as a component of working capital … Read More