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
Not sure if the stock you’re invested in is QSBS, learn more about our QSBS Monitoring Platform If you have stock options you could be in for a big surprise because the various tranches of stock options can qualify for the QSBS 100% capital gains tax exclusion depending … Read More
QSBS + Stock Options = Maximized Returns If you are an employee or contractor and you have received stock options there are a few questions that are imperative to ask upfront (i) what are the tax effects, (ii) when should I exercise my stock options, (iii) do my … Read More
Any compensation given to employees is treated as wages; therefore, FICA (Social Security and Medicare), FUTA (Federal Unemployment), and SUTA (State Unemployment) will be paid, unless the stock is received in the form of Incentive Stock Options. There is one nuance between cash and stock wages, which … Read More
Employees can be compensated with QSBS and elect the Section 1202 capital gains tax exclusion. There are various scenarios where this can happen. One is a startup company that is tight on cash, but because the company is high-growth and disrupting its target market the stock has … Read More
Under Section 1202 a qualified small business must be an operating company that is structured as a C Corporation. Even if the company was founded under a different legal structure the company can be restructured as a C Corporation and issue QSBS with the five-year timeline starting … Read More
As a founder, you have dedicated your life to building your company to find out that when you sell it a chunk of your life's work goes to the federal government. Your stock may be eligible for a 100% capital gains tax exclusion. QSBSExpert is here to … Read More
A Section 368 tax-free E reorganization or recapitalization can involve various structures, but the most commonly used structure for QSBS is a stock for stock exchange or assets for stock exchange. The tax-free reorganization will defer any gains recognized at the time of the sale until the … Read More
Under Section 1202(h)(4) the holder of QSBS can exchange their stock for other QSBS or non-QSBS stock when electing Section 351(a). Section 351(a) allows the holder to conduct a tax-free transaction, exchanging either corporate stock or property. Immediately after the exchange, the company issuing new stock in … Read More