For most of us it is a dream to be living retirement on a beach while sipping a pina colada. If you are reading this, I hope you are not wasting your time on the beach reading about taxation, unless you think you own qualified small business … Read More
As many American taxpayers and investors familiarize themselves with Qualified Small Business Stock, they may be eager to look towards their own shares or investment opportunities to see where they can reap the benefits of this favorable tax treatment. One of the industries excluded from leveraging Section 1202 … Read More
What is a C Corporation? A C corporation is a type of business structure in which the company is owned by the shareholders. These shareholders have the power to elect a board of directors who help to make governance decisions around how the company is operated. Notably, corporations … Read More
Cannabis Investors Need to Look Into QSBS Those looking to break into the growing cannabis industry through entrepreneurship would be wise to familiarize themselves with section 1202 of the IRC, the capital gains exclusion which allows for holders of QSBS to take the $10,000,000 tax-free. The cannabis industry attracts … Read More
Why Fintech and Insurtech Companies Should Look Into Qualified Small Business Stocks Buying qualified small business stock (QSBS) makes for a key part of a robust investment strategy because it facilitates a capital gains tax exclusion. The concept is simple; if you invest in a qualified small business, … Read More
United States Tax Court, Nos. 930–07, 1384–07, 13303–07, 29011–08, 29090–08, January 19, 2012 KEY QSBS TAKEAWAY(S): In Owen v. Commissioner, the taxpayer met the 60–day requirement of section 1045(a)(1) because the stock purchase agreement transaction was signed on June 17, 2002, and the sold Family First Companies shares--amounting to … Read More
On September 25, 2014, the IRS released Private Letter Ruling (PLR 201436001), addressing whether a corporation operating in the pharmaceutical field meets the Section 1202 / QSBS criteria of being a “Qualified Trade or Business”. The company in question in this PLR: works with pharmaceutical clients to commercialize experimental … Read More
On April 9, 2021, the IRS released Private Letter Ruling (PLR 202114002), addressing whether a corporation operating in the insurance field meets the Section 1202 / QSBS criteria of being a “Qualified Trade or Business”. The company in question in this PLR: helps customers obtain property, casualty, surety, personal, … Read More
Can I ask the IRS if my company qualifies as a Qualified Small Business? Taxpayers can seek guidance from the IRS to determine whether their company or a company in which they are a shareholder meets the definition of a Qualified Small Business (QSB). This would involve requesting … Read More
Most importantly not only can you provide a public benefit with your company's mission but also elect to receive the C Corporation tax exemptions as a PBC (i.e. Public Benefit Corporation) or B-Corp. PBCs and B-Corps can qualify for Section 1202 Qualified Small Business Stock (QSBS). PBCs … Read More