Combining the benefits of the Section 1202 capital gains tax exclusion and Section 1045 rollover gain nonrecognition can formulate the rocket fuel needed to boost your tax savings vehicle. Under Section 1202 a taxpayer is allowed a tax exclusion of $10 million or 10x the initial QSBS … Read More
Under Section 1045(a)(1) the QSBS gains have to be reinvested within 60 days of the sale of the QSBS into new QSBS stock. Although it has to be reinvested in 60 days the seller is not limited to one investment and is not limited to the amount … Read More
Section 1045(a)(1) says the cost of "any QSBS purchased by the taxpayer" will reduce and defer the realized gain. Therefore, the seller of QSBS can make multiple investments within the 60 day period. As a Section 1045 rollover strategy, multiple investments allows the taxpayer to spread their investment risk … Read More
Section 1045 of the tax code allows holders of Section 1202 QSBS to roll over their investments into a new QSBS investment if the QSBS is sold before the five year holding period has come to fruition. After the sale, to roll the Section 1202 gains … Read More
(a) Nonrecognition of gain In the case of any sale of qualified small business stock held by a taxpayer other than a corporation for more than 6 months and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to … Read More
A holder of QSB stock will lose their Section 1202 capital gain exclusion if the stock is sold under five years unless it is rolled into another QSBS qualifying corporation. If the stock was held for over six months the QSBS seller can elect to take a … Read More