Who is in line to lose most through the Build Back Better bills changes to Section 1202, QSBS?

If the Section 138150 amendment to IRC Section 1202 (QSBS) passes, taxpayers may no longer be able to claim a 100% capital gains exemption if:

The Adjusted Gross Income of such taxpayer equals or exceeds $400,000 – or
Such taxpayer is a trust or estate

While most early stage company founders likely make less than $400,000, many of their biggest supporters and investors likely make greater than $400,000 – for example Venture Capital Limited Partners. Will changes to QSBS negatively impact investor’s willingness to fund early stage ventures?

CapGains Inc. is following this legislation closely and is forming a coalition to stay abreast of developments – keep up to date here.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About QSBS Expert

QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.