Small businesses and startups create new markets and transform old ones, inspiring competition, driving innovation, and creating the job growth essential to growing the US economy. However, only 20-30% of early-stage tech startups succeed and most individuals willing to invest in these companies lose their money for … 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 unique tax provision, IRC Section 1202 “Qualified Small Business Stock (QSBS)”, was created to incentivize risky capital investments in the innovative startup and early-stage business marketplace in the United States. In the same manner that QSBS tax incentives jumpstart the US national economy and generate strategic … Read More
Ahead of President Biden releasing his proposed FY 2023 budget, founders, entrepreneurs, and vocal leaders in the startup marketplace sent a letter on February 16th, 2022, to Nancy Pelosi, Kevin McCarthy, Charles Schumer, and Mitch McConnell. The appeal entreats congressional lawmakers to preserve and protect QSBS and … Read More
QSBS Expert Q&A: Stock Redemptions and QSBS Regulations 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, the QSBS Expert team provides insights into these pressing questions in the highly nuanced realm of … Read More
Preparation is essential when it comes to just about everything, including prep for the tax season ahead. This year may include changes to your tax preparation and filing if you had a QSBS gain. Additionally, new questions may arise about tax filing and the pending changes … Read More
A New York Times article published on December 28th, 2021, by Jesse Drucker exposed various practices that contort the Qualified Small Business Stock (QSBS) tax exemption. The QSBS tax benefits were originally put in place to support the startup ecosystem, bolster job creation, and contribute to the … Read More
Proposed legislation making its way through the Senate has the potential to significantly lower the tax benefits of investing in the startup ecosystem. However, some accountants, financial advisors, and investment experts think with some perceptive, preemptive planning, many investors may still be able to reap the benefits … Read More
California, New Jersey, and D.C. aren’t the only states in the QSBS news as of late— Arizona is making some headlines. For several weeks, Senator Kyrsten Sinema of Arizona and Senator Joe Manchin of West Virginia stood against the BBBA as it recently worked its way through … Read More
On December 20, 2021, New Jersey’s State Senate passed a bipartisan bill (S. 4127) allowing for deductions to individual income tax from the sale of certain Qualified Small Business Stock (QSBS). To qualify for the deduction in New Jersey, the stock has to satisfy the federal Section … Read More