Qualified Small Business Stock (QSBS) under Section 1202 may allow business owners, founders and investors to exclude a significant portion of capital gains from federal taxable income when selling qualifying stock.
In this episode of Cherry Bekaert’s Tax Beat podcast, we are joined by the Firm’s National Tax Practice Leader, Michael Wronsky, Tax Directors Sarah McGregor and Barry Weins, and Transaction Tax Manager Molly Gill. Our tax professionals discuss recent Section 1202 updates, key eligibility requirements and planning opportunities for growing businesses.
Listen to learn more about:
- Core QSBS qualification requirements, including C corporation status, gross asset limits, the 80% active business test and shareholder eligibility
- Recent Section 1202 changes, including tiered holding periods and expanded gain exclusion opportunities
- Tax planning considerations for partnerships and S corporations evaluating a conversion to C corporation status
- Common QSBS pitfalls, such as stock redemptions, excess working capital, corporate investment and valuation challenges that may impact eligibility
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