Can Employees Receive QSBS as Compensation?

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

QSBS for Founders

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

What is a QSBS Tax-Free Reorganization Under Section 368?

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

Can QSBS be Exchanged for Other Stock Under Section 351?

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