Part of the genius of QSBS qualifications, regulations, and incentives is how they encourage the recycling of capital into the early-stage business ecosystem to drive innovation, create jobs, and strengthen the national economy. This effective reuse of QSBS eligible investments is made possible through the benefits laid … Read More
Equity investments that fund and grow innovative new companies in the startup marketplace move the national economy forward and propagate job creation. These types of investments are innately risky capital investment ventures, and not all investors see profitable returns. Additionally, many taxpayers have been unable to participate … Read More
Rauenhorst v. Comm'r, 119 T.C. 157 (2002). Key QSBS Takeaways: A Taxpayer will most likely not be liable for Assignment of Income Doctrine if they transferred the stock in mere anticipation or acknowledgement of a redemption, merger, or the like. It is on the IRS to prove that … Read More
Equity investments that fund the startup marketplace are crucial and necessary in moving the national economy ahead and boosting job creation. However, these investments are innately risky ventures, and lucrative return on investments (ROIs) don't always come to fruition. Until recent years, many taxpayers have been excluded … Read More
Have you already sold or plan to sell your QSBS stake before the 5-year holding period expires?5-Year Holding Period for QSBS Eligibility60 DAYS TO ROLLOVER 1st Qualified Small Business 2nd Qualified Small Business Rollover targetsIf you are a stockholder or small business owner stuck in this dilemma, the IRC Section 1045 can help. Under this … Read More
Equity investing is an inherently high-risk-high-reward venture, a positive ROI is not guaranteed, and historically not all taxpayers are qualified to participate in the most lucrative investment opportunities. But investments in innovative startups are inarguably essential in moving the national economy forward and contributing to job creation. For … Read More
What is QSBS? QSBS stands for “Qualified Small Business Stock” and is regulated by the Internal Revenue Service (IRS) under code Section 1202. It offers tax benefits to accredited investors, investment funds, employees, and founders on a federal level and in some cases also a state level. … 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
“Because of this bill, start-ups and small businesses will now have access to a big, new pool of potential investors -- namely, the American people.” - President Barack Obama during the signing of the JOBS Act, April 5, 2012 The Jumpstart Our Business Startups (JOBS) Act paved the way … 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