Foghorn Therapeutics is a pharmaceutical company which develops medicines targeting genetically determined dependencies within the chromatin regulatory system, an untapped opportunity for therapeutic intervention. Gene Traffic Control® platform, their proprietary system, gives an integrated, mechanistic understanding of how the various components of the chromatin regulatory system interact, allowing identification, validation and potential drug targets within the system.
Please note, it is important to assess the company’s business activities against Section 1202(e)(3) which specifies certain industries that are not considered a “qualified trade or business.”
A C corporation is a qualified legal entity for QSBS.
2015
Exemption Level
Given the Company was incorporated after September 27, 2010, all shares could be eligible for up to a 100% tax exclusion if the other QSBS criteria are met.
Any individual owning stock purchased or received directly from the company could potentially be eligible for the QSBS capital gains tax exclusion or the Section 1045 gain rollover if the QSBS standards as per IRC Section 1202 were met at the time of issuance.
In order to assess whether stock issued previously may qualify, the Company would also have to have not taken actions that invalidate QSBS status such as a certain level of redemptions, and would have to satisfy the active business requirement.
Do you hold stock in this company?
Validate QSBS EligibilityThis article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.