A company qualifying for QSBS has to maintain an adjusted tax basis of total assets equal to or lower than $50 million at all times before and immediately after the issuance of the stock; therefore, the maximum investment of QSBS cannot exceed the $50 million threshold. That being said, a company qualifying for QSBS has to be an operating business with 80% of its assets being used in a qualifying QSBS business, which would assume the business has existing assets, which are included in the $50 million calculation.

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