QSBS stands for “Qualified Small Business Stock” and is regulated by the Internal Revenue Service (IRS) under code Section 1202, offering tax benefits to accredited investors, investment funds, employees, and founders. QSBS is a tax benefit on a federal and in some cases also extends to a … Read More
What Is QSBS Attestation? QSBS attestation is a tool investors can use to confirm a stock's eligibility for QSBS tax benefits. Think of it as a third-party validation that a company and its stock meet the specific requirements of Section 1202 of the Internal Revenue Code. While not legally required, attestation can help avoid … Read More
Qualified Small Business Stock (QSBS) has existed for over 30 years. Launched under the auspices of Internal Revenue Code Section 1202, QSBS helps support the growth of small businesses by providing tax incentives for accredited investors and funds. Meanwhile, the Tax Cuts and Jobs Act (TCJA) of … Read More
The Internal Revenue Service (IRS) has indicated that it is still working on new guidance related to Qualified Small Business Stock (QSBS) by maintaining it on the no-rule list in the newly released Revenue Procedure 2025-1. This decision means that the IRS will not issue Private Letter … Read More
If you hold qualified small business stock (QSBS), Section 1202 of the tax code allows you to eliminate up to $10 million in capital gains from federal taxation. Even better? The benefits don't stop there. You can extend these advantages across generations through strategic gifting as part … Read More
Vice President Kamala Harris is set to unveil new tax proposals to support small businesses, and put the Democratic platform into action.. These proposals include a ten-fold increase in the federal government's small business tax deduction from $5,000 to $50,000. The campaign highlighted that this increase is intended … Read More
In today’s global economy, innovation remains on the central stage as the key enabler that leads to growth. Thus, it is important to have legislation that supports these fresh and innovative enterprises. One of the prominent policies in this area is the Qualified Small Business Stock (QSBS), … Read More
Primary Venture Partner’s co-founder, Ben Sun, recently sat down with Samir Kaji (CEO and founder of Allocate) on Samir's Venture Unlocked podcast. Amongst the topics discussed, Sun detailed how QSBS played a role in Primary’s recent secondary sale of one of their portfolios. This discussion gives an … Read More
IRS audit activity regarding QSBS seems to be on the rise. During Q1 2024 we have seen multiple taxpayers receive requests for information, had QSBS claims rejected by the IRS and / or cases have gone to trial. Has the IRS challenged or rejected your QSBS claim? Let … Read More