Complexity Surrounding the $50M Gross Asset Test At first glance, it might seem like the $50M Gross Asset Test is simple, but the reality is that in certain circumstances, it can be much more complex. For example, if a financing round has multiple closings, part of the stock … Read More
Many companies are asked to represent that their stock qualifies as QSBS before the stock is issued. If so, there may be a clause in your “Stock Purchase Agreement” or related purchase documents where the corporation stated that: “aggregate gross assets, as defined by Section 1202(d)(2) of the … Read More
Business valuations are conducted on fair market value (FMV) basis, which means “the price at which property would change hands between a willing buyer and a willing seller, neither acting under compulsion to buy or to sell, both being able and willing to trade, both being well-informed … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform Aggregate gross assets include: CashAggregate adjusted basis of other property held by the corporation. (Section 1202(d)(2)) QSBS considers the tax basis of assets, which are generally reported on Schedule L of a corporation’s tax … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform In order to qualify as a “Qualified Small Business”, Section 1202 requires the stock to meet the “Gross Asset” test, whereby the “aggregate gross assets” of the corporation: Did not exceed $50 … Read More