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
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
Are My Capital Gains Recognized on the Trade or Settlement Date? There are two related and important dates when you buy or sell stock. The trade date is the date when you place an order to buy or sell. The settlement date is the date that the cash or shares … Read More
Maximizing gains from Qualified Small Business Stock (QSBS) involves an understanding of the applicable tax laws. One key factor is the time period the IRS is allotted to retroactively audit reported QSBS, also known as the statute of limitations. What is a Statute of Limitations? Broadly speaking, a statute … Read More
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform 83(b) Election Basics An 83(b) election allows an individual to accelerate the date on which restricted shares are subject to ordinary income taxes, and potentially pay a lower tax now versus a … Read More
If there was a simple “yes or no” equation for this question, this would be a very short article. The reality is more complex, since individual circumstances will impact how companies handle QSBS-related requests. Because both the company and the individual shares held need to qualify, this … Read More
Not sure if the stock you’re invested in is QSBS, learn more about QSBS Validation Reports Qualified Small Business Stock (QSBS) is a tax incentive that I have found few are aware of and even less understand. Once you start to unpack it, you realize its importance if … Read More
Unsure if your stock is QSBS? Check your potential eligibility here. As a holder of qualified small business stock (QSBS) it is important to know what steps to take not only when you report the Section 1202 exclusion on your taxes but also when the QSBS is issued. … 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