Qualified Small Business Stock is one of the best, little known tax breaks available to those investing in small companies – the gain on such stock may be eligible for partial/complete exclusion OR rollover to another QSBS.
IRS Sec. 1202 allows taxpayers to exclude a portion – or all – of capital gains on sales of QSBS depending on when the stock was acquired, giving consideration to the following:
IRS Sec. 1045 allows taxpayers to defer capital gains on sales of QSBS by using sale proceeds to purchase replacement QSBS, under the following guidelines:
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